Agriculturally-sourced producer prices are witnessing a slower increase compared to previous periods.
The price hike for agricultural goods made in Germany took a significant dip in July. The rise was only 1.7% year-on-year, as per the Federal Statistical Office's claim. Previously, in June and May, the increase was over 3% each. Surprisingly, there was even a drop of 0.7% from June to July.
Comparatively, plant-based goods were 2.7% more expensive in July compared to the same period last year. A major contributor to this increased cost was the higher prices for table potatoes, which were 16.0% costlier than in July 2023.
The cost of producing fruit surged by 23.9%, with significant jumps in prices like table apples, increasing by 37.5%, and strawberries, priced 11.0% higher. Vegetables witnessed an overall increase of 1.0%, with crucial price hikes in cabbage (up 24.4%) and iceberg lettuce (15.9%). Conversely, grains saw a decrease of 12.4%.
The costs for animal products and their derivatives saw a climb of 0.8%. Milk had the most significant increase, with a price hike of 13.5%. Eggs followed suit, becoming 8.8% costlier. Prices for slaughter pigs plummeted by 14.9%, while those for cattle rose by 8.3%. The expense of poultry dropped by 4.8%, with ducks and turkeys becoming less expensive, while chicken remained 0.9% more expensive.
In the consumer sector, the aforementioned developments often lead to price adjustments with a delay. Traders often pass through the price variations to their customers. Consequently, consumers paid 1.5% more for food in August compared to a year ago. However, the overall inflation rate stayed at 1.9%; therefore, food curbed the excessive price surge.
Despite the decrease in agricultural products' prices in July, plant-based goods still saw a rise of 2.7%, primarily due to the high cost of table potatoes. On the other hand, the cost of dairy products, specifically milk, increased by 13.5%, leading to higher expenses for consumers in the overall food sector.
