Rising inflation: Butter is becoming significantly more expensive

Rising inflation

Producer prices are falling – but butter is still significantly more expensive

Despite cheaper energy than in the same month last year, the decline in producer prices is only gradually slowing. At the same time, some foods are becoming significantly more expensive again.

The decline in German producer prices eased somewhat in October. Manufacturers of commercial products – from gasoline to butter – demanded an average of 1.1 percent less than in the previous year, as the Federal Statistical Office announced. This continued the downward trend that has been going on for over a year, now for the 16th month in a row. In September the minus was 1.4 percent. From September to October, however, producer prices rose slightly by 0.2 percent, which was in line with the expectations of economists surveyed by Reuters.

The statistics record the prices for products from manufacturers before they are sold to wholesalers and retailers. They are therefore considered to be early signals for the development of consumer prices. The German inflation rate rose to 2.0 percent in October after falling to 1.6 percent in September, its lowest level in around three and a half years.

The fall in producer prices last month is again due to cheaper energy. This cost on average 5.6 percent less than in October 2023. Mineral oil products were on average 12.9 percent cheaper, with fuels such as gasoline 12.1 percent and light heating oil even 22.7 percent cheaper than a year ago. Gas prices fell by 10.1 percent. Electricity prices fell by 7.3 percent. Without energy, producer prices would have risen by 1.3 percent.

Food prices, however, rose by 2.1 percent compared to the same month last year. Butter (plus 52.9 percent) and confectionery (plus 20.1 percent) cost significantly more. 7.1 percent more were charged for coffee. On the other hand, grain flour (minus 10.7 percent) and pork (minus 5.4 percent) were cheaper, according to the Federal Statistical Office. You can find out how food prices have changed compared to last month in our current t-online shopping cart.