Inflation even before war in Ukraine – wholesale selling prices had risen

The inflation rate in Germany is currently rising also and probably mainly because of the war in Ukraine. However, even before the start of the war, prices were on the rise – this information shows that, among other things, the money supply may also be too large. For example, according to the latest statistics, sales prices in German wholesale had increased by 16.6% in February before the start of the war.

Prices rise and rise – even in wholesale

“Selling prices in German wholesale continued to rise sharply before the start of the war in Ukraine. In February 2022, they increased by 16.6 percent year-on-year, the Federal Statistical Office (Destatis) reported on Monday.

The year-on-year increase had been 16.2 percent in January and 16.1 percent in December. On a month-on-month basis, wholesale prices rose 1.7 percent in February. Current price developments related to Russia’s attack on Ukraine are not included in the results, as the survey was conducted as of February 5. The high year-on-year increase was mainly due to sharp rises in prices for many raw materials and intermediate goods, statisticians said.

The biggest influence on the change in February was again the price increase in the wholesale of petroleum products (+43.6 percent). There were also particularly strong year-on-year price increases in wholesale trade in scrap and residual materials (+46.0 percent), raw and sawn timber (+44.0 percent) and ores, metals and semi-finished metal products (+43.4 percent). Prices were also significantly higher in the wholesale of chemical products (+34.1 percent), metal and plastic products for construction purposes (+23.2 percent), and cereals, raw tobacco, seeds and animal feed (+22.7 percent).”

Report with material from dts news agency