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Global Economy

Producer prices rise more slowly

At first glance, the increase is bad news: According to the Federal Statistical Office, manufacturers are again asking higher prices for their commercial products – around a third more than in the same month last year. They do this mainly because the energy they need for production has become so expensive. In June, for example, industrial customers paid 180 percent more for natural gas than in the previous year. The prices for so-called intermediate goods such as pig iron, steel and fertilizers have also risen by a fifth on average.

A glimmer of hope, but no all-clear

On closer inspection, however, there could also be a glimmer of hope. Compared to the two previous months, price increases in the commercial sector lost some of their momentum. It was 32.7 percent in June instead of 33.6 percent in May. Although this is only a small decline, it is the first sign that price pressure is no longer quite as strong, according to Commerzbank experts.

Nevertheless, this should not yet be a signal for the all-clear. For example, the price increase for many building materials has been even higher than for producer prices overall, because steel has become so expensive. Inflation will therefore remain high for a long time.

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