Press release No. 028 of 20 January 2023
Producer prices of industrial products (domestic market), December 2022
+21.6% on the same month a year earlier
–0.4% on the previous month
+32.9% on an annual average in 2022 compared to 2021
WIESBADEN – In December 2022, the index of producer prices for industrial products increased by 21.6% compared with December 2021. As reported by the Federal Statistical Office (Destatis) the price increase on producer level slowed down for the third time in succession. In November the increase had been +28.2% and in October +34.5%. Compared with the preceding month November 2022 the overall index decreased by 0.4% in December 2022 (–3.9% November 2022 on October 2022).
Mainly responsible for the increase of producer prices compared to December 2021 still was the price increase of energy, due to the high weighting percentage combined with exceptionally high changes. Moreover, prices also rose significantly for non-durable consumer goods, intermediate goods, durable consumer goods and capital goods.
Also for the decrease of producer prices on a monthly basis the development of energy prices is the main reason.
High increase on energy prices on comparison with December 2021, recently slightly decreasing
Energy prices as a whole were up 41.9% compared to December 2021. Mainly responsible for the high rise of energy prices were the strong price increases of natural gas (distribution) and of electricity.
Compared with the previous month November 2022 energy prices fell by 1.0%, mainly caused by the decrease of prices for natural gas and for mineral oil products. In November energy prices had fallen by 9.6 % compared with October.
Prices of natural gas (distribution) were up 52.0% on December 2021. For trade and commerce prices increased by 113.3%, for resellers by 41.3%. Industrial consumers had to pay 36.4% more for natural gas than one year before. Power plants’ prices were up 28.9%. Across all customer groups,prices of natural gas were down 2.2% compared to November 2022.
The price for electricity across all customer groups rose by 46.8% compared to December 2021. Electricity redistributors had to pay 75.6% more than in December 2021, special contract customers 28.4%. Prices for small commercial customers who often conclude tariff-bound contracts rose by 22.4%, for private households by 19.3%. Compared with the previous month November prices for electricity increased considered across all customer groups by 1.5%.
Prices of mineral oil products were up 17.3% from December 2021 and fell by 7.1% from November 2022. Prices of light heating oil increased by 47.2% compared to December 2021 (–7.6% on November 2022), those of motor fuels were up 14.1% (–7.8% on November 2022).
The overall index disregarding energy was 12.0% up on December 2021 (unchanged compared to November 2022).
Growth in prices of non-durable consumer goods mainly due to increasing food prices
Prices of non-durable consumer goods increased by 18.1% compared to December 2021 and slightly rose by 0.5% compared to November 2022. From December 2021 to December 2022 food prices increased by 23.5%. Especially high was the price increase of sugar (+72.1% compared to December 2021). From November to December 2022 sugar prices rose by 11.6 %. Prices of meat of swine increased by 46.5% compared with December 2021, of margarine and similar edible fats by 40.8%. Milk prices were up 33.1%, coffee prices 25.1% and butter prices 24.5%.
Significant price increase on intermediate goods, especially regarding metals
Prices of intermediate goods increased by 12.3% compared to December 2021. Compared to November 2022 these prices fell by 0.4 %. A great impact on the price increase of intermediate goods in December 2021 had the price development of metals which was +10.8%. Compared to November 2022 these prices fell by 1.0%. Prices of metallic steel and ferro-alloys increased by 11.8% compared to December 2021. By contrast prices of concrete reinforcing bars in bars or coils fell by 3.4%.
Prices of wood chips increased by 143.2% from December 2021. Prices of wood pellets were up 87.3% but fell by 12.0% compared to the previous month. Prices of newsprint paper rose by 61.3% compared with December 2021, those of cereal flour by 34.7%. Prices of prepared feeds for farm animals were up 20.8%.
Prices of basic chemicals, fertilisers and nitrogen compounds increased by 23.0% compared to December 2021. Especially high also were the price increases of fertilisers and nitrogen compounds (+44.5 %).
Timber prices fell by 15.6% compared to December 2021, prices for secondary raw materials were down 19.9%.
Prices of durable consumer goods increased by 11,9% compared to December 2021, mainly caused by the price development of furniture (+14.7%).
Capital goods’ prices rose by 7.7%. The highest impact on the price development of capital goods had the increase of machine prices, which were 9.8% up on December 2021, followed by vehicles’ price development by +5.6%.
Results on the annual average of 2022
In 2022, the annual average index of producer prices for industrial products increased by 32.9% compared to the average index of 2021. This was the highest price increase since the start of the survey in 1949. In 2021 industrial producer prices had been up 10.5% on 2020.
The development of energy prices had the greatest impact on the development of the annual average of the total index, too. Energy prices were up 86.2% on the annual average of 2021 (2021 compared to 2020: +24.8%). In 2022 natural gas prices (distribution) rose by 132.8%, electricity prices by 95.4% and prices of petroleum products by 40.0%.
Disregarding energy, producer prices increased by 14.0% compared to 2021 (+6.1% in 2021 compared to 2020).
Prices of intermediate products rose by 19.4% compared to 2021 (+12.5% in 2021 compared to 2020). The price increase of metals (+26.5%) had the greatest impact on that development. Prices of wood chips more than doubled from 2021 to 2022 (+109.1%). Prices of wood pellets were up 96.1%,those of fertilisers and nitrogen compounds were up 90.9%. Prices of newsprint paper rose by 89.7%.
Prices of durable consumer goods increased by 9.7% compared to 2021. Capital goods’ prices rose by 7.1%, mainly caused by development of prices of machines (+8.4%).
Prices of non-durable consumer goods increased by 14.4% (2021 on 2020: +1.1%). Food prices were up 18.9% on 2021. Especially high was the price increase of butter (+61.4%) and of crude vegetable oils (+45.4%). Coffee prices increased by 27.0%, meat excluding poultry prices by 25.6% and sugar prices by 21.7%.
More 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.
