Butter, sugar and bakery prices rocket in Germany
Butter producer prices spiked the most at 34% in August compared with the previous month, while sugar, bakery and confectionery increased 21.5%.
Butter was even higher year on year at +41.7% and confectionery up 22%, while year on year preserved fruit and vegetable prices were up 5.2%.
Month on month preserved fruit and vegetable prices did increase, but by less than 5%. Pork prices, however were lower at -11.6% year on year.
Germany’s energy costs dip againThe rises come despite Germany’s electricity costs dipping 9.2% and natural gas by 12.3%, according to the country’s Statistisches Bundesamt.
Increased costs for services and food have been driving up Germany’s inflation since the spring, despite energy costs falling consistently. Â
Like many European countries, German consumers have seen food and drink prices rise sharply following the Covid-19 pandemic and the war in Ukraine.
“In 2023, dairy products and eggs were around 16% more expensive than the year before,” said Statista. “Meat and meat products saw a price spike of roughly 8.3% and vegetables cost 13% more.”
European Central Bank cuts interest ratesWages have, however, risen in Germany and the European Central Bank also recently cut interest rates from a high of 4% to 3.75% in the summer.
“We will keep policy rates sufficiently restrictive for as long as necessary,” said ECB president Christine Lagarde earlier this year. “[But] we are not committing to a particular rate path.”
Meanwhile, Germany’s chancellor Olaf Sholz recently called on the European Commission to delay the upcoming EUDR​, along with political and business leaders from over a dozen other countries, citing significant financial implications as one issue set to arise from the regulation’s implementation.
In the US, the Biden Administration also called​ for the EU to delay the EUDR, demanding in a letter the EC addresses ongoing concerns before enforcing penalties.
