Germany: production costs are rising. We will see how many companies will jump
Denny Muller photo
Problems for the German manufacturing system: producer prices in Germany rose to a new record rate of 25% yoy in January 2022, above market forecasts of 24.2% and compared to 24.2 % of December. Energy prices continue to provide the greatest contribution to the rise (+ 66.7%), in particular the distribution of natural gas (119%), electricity (66.7%), mineral oils (32.9%) . Other price increases were recorded for intermediate goods (20.7%), mainly metals (36.9%) including ferroalloys (51.5%); paper and cardboard (72.7%); fertilizers and nitrogen compounds (+ 67.4%); wooden containers (+ 65.7%); sawn timber (52.8%); crude vegetable oils (+ 58.5%); butter (61.1%); coffee (14.7%); capital goods (5.3%, the largest increase since December 1982), mainly cars (6%) and vehicles (3.8%). Excluding energy, producer prices increased by 12% . Compared to the previous month, producer prices increased by 2.2%, down from 5% in December. Here is a graph showing the trend compared to that of the past 25 years.
Germany seems to be disinterested in the energy problem which, however, also affects its companies. France is trying to do something, which it can also afford because the state has control of EDF, the electricity company. Italy at least pretends to do something, that is, it has given some money for the bills, not being able to do much. Germany seems absolutely passive, as if trying to let its industrial apparatus drift away.
The decisions of the "Semaforo" government, from the cut in contributions for construction, and therefore this inanity, give the impression that the German way to the green derives from the de-industrialization of the country, perhaps from the transfer to the semi-colonial economies of the east the most invasive productions.
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The article Germany: production costs are rising. We will see how many companies will jump comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/germania-crescono-i-costi-alla-produzione-vedremo-quante-aziende-salteranno/ on Mon, 21 Feb 2022 11:00:58 +0000.