Producer prices in agriculture in Germany fell for the first time in 2 years

Producer prices in agriculture in Germany fell for the first time in 2 years.

The German Federal Statistical Office (Destatis) announced the results of the Agri-PPI for April.

Consequently, the producer price index (PPI agricultural) of agricultural products in Germany decreased by 6.5 percent in April compared to the same period of the previous year. The index’s monthly decline was 2.3 percent. Thus, producer prices in agriculture fell for the first time in more than 2 years.

In the Destatis statement, it was indicated that the reason for the price decrease was “especially the base effect caused by the very high price level in the previous year”, and it was reported that producer prices in agriculture increased by 40 percent in April. 2022 after the start of the Russia-Ukraine war.

In the statement, it was noted that while plant product prices declined 20 percent annually in April, animal product prices increased 3.9 percent, the main reason for the increase in plant product prices. was the decline in grain prices.

POTATO PRICES INCREASE BY 37 PERCENT ANNUALLY

In the statement, it was indicated that grain prices in April 2023 were 38.3 percent lower than in the same period of the previous year.

It was noted that while potato prices increased by 36.7 percent annually, while fruit prices decreased by 4.2 percent, the price of milk was 3.9 percent cheaper and chicken 14.6 percent more expensive in April compared to the same period a year earlier.

Meanwhile, food prices remain one of the main drivers of inflation in Germany. Annual inflation in Germany, which was 7.2 percent in April, fell to 6.1 percent in May due to cheaper tickets and cheaper oil on public transport. Food prices, on the other hand, rose 14.9 percent in May compared to a year ago. (AA)