In May 2022, producer prices for commercial products were 33.6% higher than in May 2021. According to the Federal Statistical Office (Destatis), this was the highest increase compared to the same month last year since the study began in 1949. Commercial producer prices since December 2021 each month raise a new record compared to the same month of the previous year. In April 2022, the rate of change was +33.5%, and in March it was +30.9%. On a monthly basis, producer prices rose 1.6% in May 2022.

The dynamics of energy prices continue to be the primary reason for the increase in commercial producer prices compared to the previous year.

Strong rise in prices for all energy sources

Energy prices in May 2022 were on average 87.1% higher than in the same month last year. Compared to April 2022, these prices have increased by 2.5%. The largest impact on the annual rate of change in energy consumption was natural gas in distribution, which grew by 148.1% compared to May 2021. Power plants paid 241.2% more for natural gas than a year earlier. Natural gas became more expensive by 210.7% for industrial consumers and by 168.3% for retail chains. While end customers with higher purchase volumes, whose prices are often based on stock exchange quotes, had to pay lower prices than the previous month, prices for customers with smaller purchase volumes also continued to rise compared to the previous month. Compared to April 2022, natural gas has become 2.5% more expensive for all consumer groups.

Electricity prices in May 2022 were 90.4% higher than in May 2021 (+4.0% compared to April 2022). For redistributors, electricity cost 165.2% more than a year earlier, for consumers under special agreements - by 83.2%. Prices for commercial equipment increased by 16.8%.

Oil products rose by 55.8% compared to May 2021 and by 2.5% compared to April 2022. Light heating oil has almost doubled in price compared to a year earlier (+96.0%), motor fuels have risen in price by 49.4%. While motor gasoline prices increased by 6.5% and diesel prices by 0.5% compared to April 2022, light heating oil prices fell slightly (-0.5%).

Excluding energy, producer prices were 16.5% higher than in May 2021 (+1.2% compared to April 2022).

High price increases for intermediate goods, especially for metals, fertilizers and animal feed, as well as for industrial gases and wood packaging materials.

Intermediate goods in May 2022 were 25.1% more expensive than a year earlier. Compared to April 2022, these prices have increased by 1.5%. The rate of change of metals as a whole had the largest impact on the annual rate of change of intermediate goods, increasing by 38.1%. Here, prices for pig iron, steel and ferroalloys increased by 51.8%, non-ferrous metals and semi-finished products from them rose by 24.8%. While pig iron prices rose by 1.9% compared to April 2022 (after +7.5% and 9.8% in April and March respectively), non-ferrous metal prices decreased by 2.0%. Reinforcing steel grew by 72.1% y/y and 5.2% m/m. Raw aluminum prices were 42.0% higher than a year earlier.

The increase in prices compared to the previous year was especially high for fertilizers and nitrogen compounds, amounting to +110.9%. Technical gases went up in price by 68.8% over the year, wood packaging - by 67.4%. Livestock feed prices rose 48.7%. Sawn softwood prices are up 41.9% compared to May 2021.

Paper and cardboard rose by 52.3% compared to last year. Prices for newsprint especially increased here (+111.3%). Corrugated paper and paperboard, important for the packaging industry, cost 42.4% more.

Cereal flour prices were 44.8% higher than in May 2021. Compared to April 2022, these prices increased by 5.1%.

Growth in prices for consumer goods mainly due to higher prices for meat and meat products

Non-durable consumer goods prices in May 2022 were 14.7% higher than in May 2021 and up 1.3% compared to April 2022. Food was 19.2% more expensive than last year. Butter prices rose especially sharply (+80.2% compared to May 2021, +7.2% compared to April 2022). Raw vegetable oils have risen in price by 68.4% compared to May 2021. Beef has risen in price by 42.9% compared to a year earlier, coffee - by 33.6%, milk and dairy products - by 24.1%. Pork prices were 24.1% higher than in May 2021 but down 2.6% compared to April.

Prices for durable goods in May 2022 were 9.4% higher than a year earlier, mainly due to the dynamics of furniture prices (+11.9%).

Germany's gas storage facilities were replenished slightly overnight despite a significant cut in supplies from Russia, the country's grid regulator said on Saturday, but confirmed that the gas supply situation remains "tight."

Saturday's gas storage rate was 56.67%, up slightly from Friday's 56.29%, German grid regulator Bundesnetzagentur said in its daily gas supply report, reiterating its call to conserve as much gas as possible.

The German government has urged businesses and households to reduce their gas consumption to a minimum in order to ensure sufficient storage levels before the start of the heating season in about 12 weeks.

Earlier this week, Russia limited supplies via the Nord Stream 1 gas pipeline to about 40% of its capacity, which Moscow blamed on delaying equipment stuck in Canada for maintenance.

Germany, which consumes most of its fuel from Russian gas, questioned this explanation and said Russia's actions were politically motivated to make it harder to fill the storage facilities.

Bundesnetzagentur President Klaus Müller said late on Friday that even if Germany's gas storage facilities were 100% full, that would only last 2.5 months if Russia completely cut off supplies.