Data from the Federal Statistical Office (Destatis) showed on Wednesday that wholesale prices rose by 8.9% in February, as expected, after an increase of 10.6% per annum in January. The latest increase was the weakest since April 2021. Destatis also stated that price growth has been slowing down for the 5th month in a row. On a monthly basis, wholesale price growth slowed to 0.1% from 0.2% in January. Consensus estimates suggested an increase of 0.6%.
The report also showed that the increase in wholesale prices compared to February 2022 was mainly due to the higher cost of food, beverages and tobacco products (+16.8%). Prices for milk, dairy products, eggs, edible oils and fats jumped by 25.6% per annum, while prices for meat and meat products increased by 21.4% per annum. An increase in prices was also recorded for sugar, confectionery and bakery products (+21.4% per annum), as well as fruits, vegetables and potatoes (+18.2% per annum). Also living animals (+51.0%), building materials and elements (+21.9%) and Machines, equipment and supplies (+11.3%) had a large impact on the annual rate of change in February. Overall, recent data suggest that inflationary pressures in Europe's largest economy remain high.