The fastest increase in Germany wholesale prices in 3.5 years

According to data from the German Federal Statistical Office (Destatis), the wholesale price index increased by 0.4 percent in October compared to the previous month and 8.8 percent compared to the same month last year.

This increase recorded on an annual basis reached the highest level since February 2023. The index increased by 6.8 percent in August and 8.7 percent in September on an annual basis.

In Destatis' statement, it was stated that the price increase in October was determined by the conflicts in Iran and the Middle East, which increased the wholesale prices of energy products.

The highest increase on an annual basis was recorded in petroleum products with 47.6 percent. While prices in grain, raw tobacco, seeds and animal feed wholesale trade increased by 21.2 percent, the increase in chemical products was 18.6 percent.

Fuel discount curbed consumer inflation

In the statement, it was stated that price changes in wholesale trade, which acts as an intermediary between producers and final consumers, are partially reflected in consumer prices with a certain delay.

Annual consumer inflation in Germany, which was 3.3 percent in September, decreased to 2.8 percent in October. It is considered that the fuel discount that the government put into effect at the beginning of October was effective in this slowdown in inflation.