Press release No. 110 of 20 March 2023
Producer prices of industrial products (domestic market), February 2023
+15.8% on the same month a year earlier (preliminary)
–0.3% on the previous month (preliminary)
WIESBADEN – As reported by the Federal Statistical Office (Destatis) referring to preliminary results, the index of producer prices for industrial products increased by 15.8% compared to February 2022. In January 2023 the increase had been +17.6%. Compared with the preceding month January 2023 the overall index decreased by 0.3% in February 2023 (–1.2% January 2023 on December 2022).
The results of the survey on producer prices are preliminary with regard to the overall index, the main industrial group energy and the indices on electricity and natural gas (distribution). The reason is the price brake on electricity and natural gas which is valid from January 2023 but will be realised only starting in March 2023. Hence the above mentioned subindices can be calculated for January and February 2023 without taking into account the price brake as the reporting units do not yet have the prices including the price brake. With the publication of the results on March 2023 the figures for January and February will be revised.
Mainly responsible for the increase of producer prices compared to February 2022 still was the price increase of energy, due to the high weighting percentage combined with exceptionally high changes. Moreover, prices also rose significantly, in parts due to the price development for energy products, 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 of energy prices in comparison with February 2022, but month-on-month decrease
Energy prices as a whole were up 27.6% compared to February 2022. Mainly responsible for the high rise of energy prices were the strong price increases of natural gas (distribution).
Compared with the previous month January 2023 energy prices fell by 1.4%, as well mainly caused by the decrease in the prices of natural gas.
Natural gas prices (distribution) were up 38.9% on February 2022. For trade and commerce, prices increased by 91.5%, for resellers by 40.2%. Industrial consumers had to pay 8.9% more for natural gas than one year before. Power plants’ prices were up 26.8%. Across all customer groups, natural gas prices were down 4.2% compared to the previous month January.
Electricity prices across all customer groups rose by 27.1% compared to February 2022. Prices for small commercial customers who often conclude tariff-bound contracts rose by 39.5%, for private households by 38.2%. Electricity redistributors had to pay 37.0% more than in February 2022, special contract customers 8.5%. Compared with the previous month January electricity prices considered across all customer groups increased by 2.5%.
Prices of mineral oil products were up 5.1% from February 2022 and decreased by 1.7% from January 2023. Light heating oil prices increased by 8.3% compared to February 2022 (–7.3% on January 2023), those of motor fuels were up 3.5% (–2.0% on January 2023).
The overall index disregarding energy was 10.2% up on February 2022 (+0.5% compared to January 2023).
Growth in prices of non-durable consumer goods mainly due to increasing food prices
Prices of non-durable consumer goods increased by 17.9% compared to February 2022 and rose by 0.9% compared to January 2023. From February 2022 to February 2023 food prices increased by 23.4%. Especially high was the price increase of sugar (+90.4% compared to February 2022). On a monthly basis sugar prices were up 11.3%. Prices of meat of swine increased by 58.9% compared with February 2022, of processed and preserved potatoes by 49.0%. Margarine and similar edible fats prices were up 38.9%, milk prices 30.3% and coffee prices 16.7%.
The only items cheaper than a year before were butter (–5.5%) and crude vegetable oils (–8.8%).
Prices of durable consumer goods increased by 10.5% compared to February 2022, mainly caused by the price development of furniture (+12.1%).
Significant price increase for intermediate goods, especially regarding glass, ceramics and processed stones
Prices of intermediate goods increased by 8.6% compared to February 2022. Compared to January 2023 these prices rose slightly by 0.1 %. The price increase compared to February 2022 was largely attributable to the price development of glass, ceramics and processed stones (+25.4% compared to February 2022).
Wood chips prices increased by 45.5% from February 2022. Wood pellets prices were up 25.6%. The prices of both product groups decreased from January 2023 to February 2023. Cereal flour prices rose by 33.8% compared with February 2022. Prices of fertilisers and nitrogen compounds increased by 23.4% compared to February 2022.
Metal prices increased by 3.2%. Compared to January 2023 these prices fell by 0.6%. Prices of metallic steel and ferro-alloys increased by 1.5% compared to February 2022. By contrast prices of concrete reinforcing bars in bars or coils fell by 8.2%.
Significantly down compared to February 2022 were the prices of sawn and planed wood (–12.1%) and of non-metallic secondary raw materials (–44.7%).
Capital goods’ prices rose by 7.7% (+0.4% compared to January 2023). The highest impact on the price development of capital goods compared to the previous year had the increase of machine prices, which were up 9.4%, followed by vehicles’ price development by +5.6%.
Methodological note:
The index of producer prices of industrial products (domestic sales) measures the price changes of industrial products produced and sold at home by domestic enterprises of mining and quarrying, of manufacturing and energy and water supply. All charges and taxes on goods are included, apart from value-added tax. The index portrays price developments at the first levels of the value added chain. Reference day of the survey is the 15th of the reporting month.
The index of producer prices of industrial products (domestic sales) will be transposed to the new base year 2021 with the reporting month of January 2024. First results related to the new base year will be published in March 2024.
Additional information:
The statistical report on “Prices indices of industrial products (domestic market)" (only in german) includes the recent results. The statistical report replaces the former “Fachserie 17 Reihe 2”.
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.
