Data published by the Federal Statistical Office (Destatis) showed that in November, the German producer price index increased by 0.8% compared with an increase of 3.8% in October. Economists had expected a 1.4% increase. Meanwhile, in annual terms, producer prices jumped by 19.2% after an increase of 18.4% in October, and recorded the largest increase since November 1951 (+20.6%).
Destatis reported that the catalyst for the annual increase in the producer price index was energy - their cost soared by 49.4% per annum and by 1.2% relative to October. The prices for natural gas (distribution) (+83.4%) and electricity (+48%) increased especially strongly. Meanwhile, excluding energy, the producer price index increased by 9.9% per annum.
The data also showed that prices for intermediate goods increased by 19.1% per annum and by 1.1% on a monthly basis. A significant increase in prices was also recorded for secondary raw materials (+79.1% per annum) and wooden containers (+73.7% year) and lumber (+72.5% per annum).
Prices for short-term consumer goods increased by 3.7% per annum and by 0.6% on a monthly basis, while food prices increased by 4.7% per annum. Meanwhile, prices for consumer durable goods increased by 3.7% per annum, mainly due to an increase in furniture prices (+4.8%).