The German producer price index fell in March by 30.9 percent. higher than in the same period last year. The Financial Times confirms that too Most of them are from the beginning of data collection – that is, since 1949
The pace of German producer price inflation is now twice as fast as it was in the 1970s, an era characterized by stagnant inflation, a period of low growth and high inflation.
Germany was fighting inflation in Ukraine even before the war. Now it is much worse – the country depends on Russian raw materials, but also on agricultural products from Ukraine.
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Higher production costs create the potential for higher consumer prices in the coming months, as companies pass on their costs to buyers. Currently, the inflation rate in Germany is 7.3%. It is the highest since German reunification. Some economists expect it to rise to double-digit values in the coming months.
Germany also has other problems – often due to supply problems and high prices Supermarket shelves are not available.
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