The upward trend in prices in the German wholesale trade continued to weaken in March. It’s the lowest it’s been in over two years. Year-on-year, wholesale prices rose by 2.0 percent, as the Federal Statistical Office announced on Friday in Wiesbaden. It is the sixth straight decline and the lowest annual rate since early 2021.
The annual rate was 8.9 percent in February and 10.6 percent in January. Last spring, the increase in wholesale prices was at times more than twenty percent, in April 2022 around 23.8 percent. In a monthly comparison, wholesale prices rose slightly in March, as the Federal Office further announced. In this regard, it went up 0.2 percent.
Wholesale is one of several economic stages at which the general price level is formed. In addition to wholesale, this includes the prices for goods imported into Germany and the prices that manufacturers receive for their products. They all affect consumer prices, which the European Central Bank (ECB) bases its monetary policy on.
The main drivers of wholesale prices in March were the costs of food, beverages and tobacco. “On average, the prices here were 16.4 percent higher than in March 2022,” the statement said. Meat and meat products in particular were more expensive. In addition, wholesale fruit, vegetables and potatoes were significantly more expensive in March than a year ago. On the other hand, petroleum products and metals were much cheaper wholesale than in March 2022, it said.
