Germany’s wholesale price inflation expanded to the fastest rate since 1974, according to the data from the Federal Statistical Office.
- Wholesale prices jumped 13.2% YoY in September 2021 compared to the 12.3% YOY increase posted in August.
- Destatis stated that the last time there was a higher increase than in the month of the previous year was in June 1974, when wholesale prices increased 13.3% amidst the first oil crisis.
- The recent annual growth was mainly triggered by the sharp increase in many raw materials and intermediate products. Another reason for the increase was the low base of comparison.
- On a month-on-month basis, wholesale price inflation increased 0.8% from 0.5% in August.
The index of the wholesale prices is part of ‘Crisis monitor,’ which is used by Destatis to compare the development of major short-term indicators between the COVID-19 crisis and the financial and economic crisis of 2008/2009.
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Source: Federal Statistical Office