In March, the German annual producer price inflation topped 30%, reaching the highest level since the Federal Statistics Office began collecting data 73 years ago. Officials announced the milestone on Wednesday, stating that energy prices were likely to blame. Energy prices rose nearly 84% in 2022 from March of last year, due to increases in the price of natural gas. This is likely another sign of the impact Russia’s invasion of Ukraine is having on the German economy.
The Federal Statistics Office stated that consumers should brace themselves for the impact as factory gate inflation feeds into retail prices. According to Wednesday’s figures, consumers will likely be spending more on everything from furniture to meat, as the inflation will spread across nearly all consumer goods. Global energy prices were rising even before Russia’s invasion, as countries began to reopen from pandemic lockdowns and the demand for fuel surged. Western sanctions and other effects of the war have pushed prices up even further.
Read More: This measure of German inflation just hit its highest level since 1949
