Press release No. 488 of 21 November 2022
Producer prices of industrial products (domestic market), October 2022
+34.5% on the same month a year earlier
–4.2% on the previous month
WIESBADEN – In October 2022, producer prices of industrial products increased by 34.5% compared with October 2021. As reported by the Federal Statistical Office (Destatis), the price increase at the producer level slowed down. In August and September the rate of increase had been 45.8% each. Compared with September 2022, producer prices decreased by 4.2% in October 2022. This was the first month-on-month decrease since May 2020 (–0.4% on April 2020).
The main reason for the year-on-year increase in producer prices of industrial products still was the development of energy prices. This was due to the large weight of energy prices in the overall index, combined with exceptionally high price changes. Moreover, prices also rose significantly for non-durable consumer goods, intermediate goods, durable consumer goods and capital goods, one of the reasons being the increasing energy prices.
Energy prices rose by just under 86% year on year
Energy prices were up an average 85.6% in October 2022 compared to October 2021. The main factor influencing the year-on-year rate of change in energy prices was the strong price increases for natural gas (distribution), followed by electricity price rises.
Compared with September 2022, energy prices fell by an average 10.4%, which was mainly caused by the decrease of electricity and natural gas prices (distribution).
The price of electricity across all customer groups rose by 90.3% compared to October 2021. Electricity redistributors had to pay 137.7% more than in October 2021, special contract customers 80.1%. Prices rose by 19.0% for small commercial customers who often conclude tariff-bound contracts. Compared with the previous month, electricity prices fell by 16.9% across all customer groups. Large customers paid less than in September 2022, while small customers had to pay more.
Prices of natural gas (distribution) were up 125.6% on October 2021. Industrial consumers had to pay 151.2% more for natural gas than one year before. For trade and commerce, prices increased by 119.2%, for resellers by 117.7%. Prices for power plants were up 110.2%. Across all customer groups, prices of natural gas were down 9.0% compared to September 2022, which was mainly caused by price decreases for large customers.
Prices of mineral oil products were up 34.6% from October 2021 and rose by 2.6% from September 2022. Prices of heating oil increased by 76.2% compared to October 2021, those of motor fuels were up 30.8%.
When energy prices are excluded, producer prices were up 13.7% on October 2021 (+0.4% compared to September 2022).
Growth in prices of non-durable consumer goods mainly due to increasing food prices
Prices of non-durable consumer goods increased by 19.0% in October 2022 from October 2021 and rose by 1.1% on September 2022. From October 2021 to October 2022 food prices increased by 25.1%. Especially high price increases were recorded for butter (+66.3% on October 2021). Sugar prices were up 54.0% on a year earlier; they increased by 47.2% on September 2022 alone. Prices rose by 47.0% for pork, 38.3% for cheese and curd and 36.1% for milk. Coffee prices were up 29.1% year on year. Prices for crude vegetable oils were up 28.8% on October 2021, whereas they fell for the fifth time in a row on the previous month.
Significant price increases for intermediate goods, especially regarding metals and chemical precursors
Prices of intermediate goods increased by 15.9% in October 2022 on a year earlier.. Compared to September 2022, these prices slightly increased by 0.1 %. The main reason for the year-on-year price increase for intermediate goods was the 15.7% increase in metal prices. Compared to September 2022, these prices fell by 0.4%. Prices of pig iron, steel and ferro-alloys increased by 21.0% compared to October 2021.
Prices of basic chemicals, fertilisers and nitrogen compounds increased by 32.8% year on year. Especially high year-on-year price increases were observed for fertilisers and nitrogen compounds (+113.1%). Prices of ammonia, which is used for the production of fertilisers, were up 182.3%.
Prices of wood pellets increased by 151.0% from October 2021, and the price rise for wood chips was nearly the same (+146.8%). Prices of newsprint paper rose by 95.7%, those of cereal flour by 40.7% on October 2021. Prices of prepared feeds for farm animals were up 33.4%.
Wood prices (total) fell by 12.5% compared to October 2021, prices for secondary raw materials were down 12.4%.
Prices of durable consumer goods increased by 11.3% compared to October 2021, mainly caused by the price development of furniture (+13.4%).
Capital goods’ prices rose by 7.8% on a year earlier. The highest impact on the price development of capital goods was exerted by machinery prices, which were up 9.5% on October 2021, followed by vehicles price development (+5.6%). Especially high price increases were observed for turbines (+20.0%) and ventilators (+17.9%).
Additional information
Long time series on the overall index are available in table Producer price indices for industrial products (61241-0002), more detailed data in table Producer price indices for industrial products (61241-0006) in the GENESIS-Online database.
