Saturday, November 27

German producer prices up 18.4 percent – biggest rise since 1951 – News (Ekot)

Concerns about rising inflation spreads over large parts of the world. Today came figures from Germany. Producer prices rose at an annual rate of 18.4 percent. This is the largest increase since November 1951. Now producer prices are not the same as the prices you pay in the store – it is called the consumer price.

Now it’s about the price of goods that companies trade with each other, goods that are needed in production. But sooner or later, these prices will have an impact, albeit diluted – there is much else that affects the final price.

Behind the price increase There are a number of factors. High energy prices that find their way into every cell in the economy, problems in supply chains that cause prices to rise further and that prices are compared with prices a year ago, when the economy was severely depressed by the pandemic. So low comparative figures. And it looks similar in large parts of the world.

Inflation is now 4 percent in the EU, 4 in the UK, 3.1 in Sweden and over 6 in the US. And the trend is rising.

But central bank governors on both sides The Atlantic says that high inflation is a transient phenomenon. The effects of the pandemic will soon subside. Other economists warn that high commodity prices are not only looking for higher prices for goods in stores, but also for eventually rising wages. Then inflation will not subside, but will gain further momentum, the reasoning reads. In the United States, there are such trends.

Factors that drive inflation can now soon be added to this year’s harvest. Yesterday was Lantmännen for sharply raised food prices in Sweden. Weather with alternating heat, drought and plenty of rain greatly reduced the harvest. And Sweden is not unique.

The wheat crops in Russia, Canada and the United States have also been affected. The price of wheat is now the highest since 2012 and the world’s largest exporter, Russia, has cut back on exports after Moscow raised the tax on deliveries out of the country to keep domestic food prices down. Another major player in the world market, Canada, is also expected to cut exports sharply after a record high and dry summer.

In addition, agriculture – like many other companies – is pressured by high prices for energy, fertilizers and other inputs.

Sooner or later all this reaches the price of the store shelf.

Reference-sverigesradio.se

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