Agricultural product prices for producers in Germany decline.
In March, the decrease in prices for agricultural products by producers slowed down compared to the previous months. The Federal Statistical Office stated that producer prices dropped by 2.2% on average compared to March 2023. Previously, prices had declined by 7.4% in January, 5.8% in February, and a whopping 9.9% in December 2023. However, between February and March, producer prices for agri-products increased by 0.9%.
At the consumer level, slowing producer prices typically take some time to reflect. This suggests that the period of high food inflation might be coming to an end, at least temporarily. In fact, consumers paid just 0.5% more for food in April compared to the same month last year.
In March, plant-based product prices rose by an average of 1.9% at the producer level relative to the same month in 2023, with animal product prices falling 4.9%. Prices for grains dropped by around 29%, while wine became 1.6% pricier. Contrary to the trend, fruit producer prices jumped up by 27.3%.
The cost of dessert apples skyrocketed, with a 37.8% increase in price. Vegetables became 4.1% more expensive, with tomatoes and cabbages seeing significant hikes at 46.7% and 45%, respectively. The price of table potatoes rose a massive 51.7%.
Prices for animal products fell due to cheaper milk, which was 7.1% less expensive in March 2023 compared to previous year. The price of pigs for slaughter fell 3.4%, for cattle 5.2%, and for poultry an incredible 7.8%.
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Despite the overall decline in producer prices for agricultural products in Germany, some specific categories experienced price increases. For instance, fruit producer prices surged by 27.3% in March 2023. Moreover, butchers in Germany may have breathed a sigh of relief as animal product prices, particularly for milk, pigs, cattle, and poultry, all saw significant decreases in producer prices.
Source: www.ntv.de
