German producer prices rise at record speed in May

FRANKFURT – Producer prices in Germany rose at a record pace in May, marking the fastest increase since the start of data collection in 1949, the country’s statistics office reported Monday.

Producer prices for industrial products increased by 33.6 percent compared with May 2021. German producer prices have climbed to a new record every month since December 2021.

Price increases continue to be driven by primarily by soaring energy costs, which were up 87.1 percent compared to May 2021. Natural gas, which German industry relies on heavily, jumped by 148.1 percent. Germany announced on Sunday it would reduce gas consumption and store as much natural gas as possible amid concerns Russia may cut off supply.

The overall index, excluding energy, was 16.5 percent up compared May 2021, showing that price pressures are becoming more widely spread.

The ongoing rise in producer prices suggests that consumer price inflation has not yet reached its peak.