Germany’s Manufacturers Price Index Hits Record 33.6%
In May, Germany’s producer price index (PPI) increased by 33.6 percent year on year, according to the Federal Statistical Office. In the history of statistics, this is a new high.
Germany’s PPI has been steadily climbing up since the commencement of Russia’s military intervention in Ukraine,. In March, the index increased by 30.9 percent year over year, and in April, it increased by 33.5 percent.
PPI increased by 1.6 percent in May compared to April, above experts’ expectations of 1.5 percent. The major driver of the increase was a significant increase in energy prices. Prices in May were 87.1 percent higher than they were a year earlier. The country’s power plants had to pay 3.5 times more for gas at the time than they had in May 2021. In addition, power rates increased by 90.4 percent year over year.