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 again
The 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.
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 rates
Wages 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.
