German wholesale prices fall sharpest in 3 years

Selling prices in Germany's wholesale trade fell by 4.1 per cent in September compared to the same month last year, marking the sharpest year-on-year decline since May 2020, according to the Federal Statistical Office (Destatis). As in previous months, the decline was "primarily due to a base effect" from large price increases in 2022 as a result of the Russia-Ukraine war, Xinhua news agency quoted Destatis as saying on Monday. The "biggest impact" came from the 19.8 per cent drop in prices for mineral oil products.

Wholesale prices for some foods, on the other hand, continued to rise sharply in September, up more than 10 per cent from a year earlier. This included fruit, vegetables and potatoes, as well as confectionery and bakery products. Consumer price inflation, for which wholesale prices are an early indicator, last month already slowed to 4.5 per cent in Germany, its lowest level since Russia launched its brutal invasion of Ukraine in February 2022. However, inflation in Europe's largest economy "remains high", Destatis President Ruth Brand was quoted as saying.
Food continues to be the main inflation driver.

According to the Federation of German Consumer Organizations (VZBV), price increases of up to 80 per cent are still being observed for some foodstuffs. Consumers "feel let down with the constant price increases in the supermarket", VZBV Executive Director Ramona Pop said last week, calling on the government to "bring all the relevant players to the table in a price summit and finally work out options for action".