Berlin (Reuters) – German wholesale prices fell for the 12th month in a row in March.
They fell by an average of 3.0 percent compared to the same month last year, as the Federal Statistical Office announced on Tuesday. There was also a decrease of this amount in February and 2.7 percent in January. Compared to the previous month, prices rose by 0.2 percent.
Wholesale is considered an important link between manufacturers and end customers; price reductions usually arrive with a delay and at least some of them reach consumers. In March, the inflation rate fell to 2.2 percent, its lowest level in almost three years.
In March, the greatest influence on the downward trend at the wholesale level was again exerted by petroleum products such as gasoline, which rose particularly sharply after the Russian invasion of Ukraine in February 2022. This time they fell by 3.3 percent compared to the same month last year. There were significant price declines in wholesale trade for grain, raw tobacco, seeds and animal feed (-19.8 percent), for ores, metals and metal semi-finished products (-13.6 percent), for chemical products (-13.1 percent) and for scrap materials residues (-6.4 percent).
However, many foods and beverages became more expensive. In the wholesale trade in tobacco products, prices rose by 5.8 percent in March. Significantly more had to be paid for fruit, vegetables and potatoes (+4.4 percent) as well as for drinks (+4.2 percent) than a year ago.
Economists expect inflation to ease significantly this year. In their joint forecast for the federal government, the leading economic research institutes assume that the inflation rate this year will be an average of 2.3 percent. 1.8 percent is expected for 2025. For comparison: Last year consumer prices rose by 5.9 percent.
(Report by Rene Wagner – If you have any questions, please contact our editorial team at [email protected])