Germany’s producer price index (PPI) of industrial products rose by 7.2pc in May from the same month last year and grew by 1.5pc from April, according to the Federal Statistical Office of Germany (Destatis).
The PPI of intermediate goods grew by 10.7pc in May on an annual basis and rose 2.2pc from the previous month. This increase was attributed to a 69.9pc growth in secondary raw material prices and 23.1pc increase in metals last month compared to May 2020. The PPI for iron, steel and, other ferro-alloys rose by 33.6pc while non-ferrous metal increased by 26.6pc in May from the same month last year, Destatis reported.
Destatis stated that the main reason for the increase in iron ore prices was due to the higher demand in Germany and other countries and a shortage in supply. Additionally, the import price of iron ore surged by 76.8pc in April from the same period in 2020.
The country’s producer price index for capital goods increased by 1.2pc in May compared to the same month last year and was up by 0.2pc from April this year. The price index for durable consumer goods rose by 1.7pc in May on an annual basis and by 0.1pc from the previous month. The producer price index for non-durable consumer goods increased by 0.5pc in May from the same month in 2020 and remained unchanged from April.