Press release No. 286 of 18 June 2021
Producer prices of industrial products (domestic market), May 2021
+1.5% on the previous month
+7.2% on the same month a year earlier
WIESBADEN – In May 2021, the index of producer prices for industrial products increased by 7.2% compared with May 2020. As reported by the Federal Statistical Office this was the highest increase compared to the corresponding month of the preceding year since October 2008 (+7.3%), when prices rose strongly before the finance crisis. Compared with the preceding month April 2021 the overall index increased by 1.5% in May 2021. The last time prices rose more compared to the previous month was also in the run-up to the financial and economic crisis in July 2008 (+2.0%).
Mainly responsible for the increase of producer prices compared to May 2020 were the prices of intermediate products and of energy.
Significant price increase on intermediate goods, especially regarding secondary raw materials, wood and metals
Prices of intermediate goods increased by 10.7% compared to May 2020. Compared to April 2021 these prices were up 2.2 %. Compared to May 2020 intermediate goods’ prices increased especially regarding metallic secondary raw material (+69.9%), sawn and planed wood (+38.4%) and metals (+23.1%). Prices of basic iron, steel and ferro-alloys increased by 33.6%, prices of non-ferrous metals were up 26.6%. The main reasons for the rise in steel prices are likely to be increasing demand in Germany and abroad, problems in the supply of raw materials and sharp increases of import prices for iron ore (+76.8% from April 2020 to April 2021). Also prices for basic chemicals showed a strong plus compared to May 2020 (+17.9%). Only few prices of intermediate goods fell compared to May 2020, two of them being electronic integrated circuits (-14.2%) and wood in chips and particles (-22.6%).
Strong increase in prices for all energy sources
Energy prices as a whole increased by 14.9% compared to May 2020 and by 2.6 compared to April 2021. The price increase from May 2020 to May 2021 is mainly caused by a base effect resulting from the sharp drop in prices in spring 2020 in the course of the pandemic. National CO2-pricing that has been introduced in January 2021 on several energy products also had a great impact on the price increase of energy. For example prices of natural gas sold to industrial consumers with an annual consumption of 116 300 MWh increased by 25.5% disregarding CO2-pricing, including CO2-pricing they rose by 37.6%.
The overall index disregarding energy was 4.9% up on May 2020.
Prices of durable consumer goods increased by 1.7% compared to May 2020 (+0.1% compared to April 2021), capital goods, such as machines and vehicles, by 1.2% (+0.2% compared to April 2021).
Increasing prices for oils and fat led to growth in prices of non-durable consumer goods
Prices of non-durable consumer goods increased by 0.5% compared to May 2020 but remained unchanged compared to April 2021. Food prices increased from May 2020 to May 2021 by 0.3. Prices of crude vegetable oils were up 39.8%, butter prices rose by 27.4%. Prices of sugar increased by 13.3%. By contrast, pork prices decreased by 6.2% (-4.2% compared to April 2021). Prices of meat and poultry meat products fell by 8.1% compared to May 2020.
| Year / month | 2015 = 100 | Change in % compared with | ||
|---|---|---|---|---|
| corresponding month of preceding year | preceding month | |||
| 2020 | May | 103.0 | -2.2 | -0.4 |
| June | 103.0 | -1.8 | 0.0 | |
| July | 103.2 | -1.7 | 0.2 | |
| August | 103.2 | -1.2 | 0.0 | |
| September | 103.6 | -1.0 | 0.4 | |
| October | 103.7 | -0.7 | 0.1 | |
| November | 103.9 | -0.5 | 0.2 | |
| December | 104.7 | 0.2 | 0.8 | |
| 2021 | January | 106.2 | 0.9 | 1.4 |
| February | 106.9 | 1.9 | 0.7 | |
| March | 107.9 | 3.7 | 0.9 | |
| April | 108.8 | 5.2 | 0.8 | |
| May | 110.4 | 7.2 | 1.5 | |
| thereof: | ||||
| Intermediate goods | 113.9 | 10.7 | 2.2 | |
| Capital goods | 107.0 | 1.2 | 0.2 | |
| Durable consumer goods | 108.7 | 1.7 | 0.1 | |
| Non-durable consumer goods | 108.1 | 0.5 | 0.0 | |
| Energy | 111.1 | 14.9 | 2.6 | |
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
