German Producer Prices Soar –

German producer prices jumped at a record pace last month, official data showed on Wednesday, as the war in Ukraine began to weigh heavily.

According to DestatisAccording to the German Federal Statistical Office, producer prices rose 30.9% in March year on year, the largest increase since records began in 1949, or 4.9% in February 2022.

Most analysts expected an annual increase closer to 28.2%, according to a Reuters survey.

Destatis said Wednesday’s data reflected “early implications stemming from Russia’s attack on Ukraine.”

The late February invasion saw already exorbitant energy prices soar and raised the price of various other commodities, including wheat and fertilizers. Destatis said fertilizer and nitrogen compound prices jumped 87.2% year-on-year in March. Russia is one of the largest fertilizer exporters in the world.

Energy prices are now up 83.8% from March 2021, or 10.4% from February 2022. As part of this, natural gas is up 144.8% from a year on year, electricity prices by 85.1% and petroleum products by 61.3%.

With energy removed, producer prices rose 14.0% in March 2021 and 2.3% from the previous month, Destatis noted.

James R. Rhodes