German producer prices hit record 24.2 percent in December

The technician works on the electrical ID assembly line of the German car maker Volkswagen. Three cars in Dresden, Germany, June 8, 2021. (Matthias Rietschel / Reuters)

Berlin-Germany producer prices rose 24.2% year-on-year in December, with a record year-on-year rise due to rising energy prices, official data showed Thursday.

Since the Federal Bureau of Statistics began compiling producer price figures in 1949, the surge from the previous December was the largest year-on-year increase in any month, the agency said.

December numbers were very high for the third straight month following October and November, showing increases of 18.4 percent and 19.2 percent, respectively.

The average expected value of analysts polled by Reuters increased by 19.4% annually.

Producer prices also recorded a record increase of 5% month-on-month, compared to 0.8% in November.

Energy prices have risen 69% compared to December 2020, according to the Federal Bureau of Statistics. With the removal of energy prices, producer prices rose 10.4 percent annually.

Producer prices are considered a leading indicator of inflation. These are recorded at the factory gates before the product is further processed or sold, allowing early indication of consumer price trends.