German producer prices clock in with fastest rise ever in December

A surge in natural gas prices stoked the fastest pace of increase in German producer prices ever at the end of 2021.

According to the Federal Office of Statistics, producer prices in the euro area's largest economy jumped at a month-on-month pace of 5.0% in December, taking the annual rate of producer inflation to a record 24.2%.

That compared to economists' forecasts for an increase of 0.9% on the month and an unchanged reading versus November of 19.2% year-on-year.

In year over year terms, natural gas and electricity prices ran up by 121.9% and 74.3% in 2021.

A 15.7% month-on-month increase in December took the gain in energy prices as a whole for 2021 to 69.0%.

Intermediate goods prices meanwhile rose by 0.9% on the month and by 19.3% year-on-year, those of non-durable consumer goods by 0.8% on the month and 4.7% year-on-year, those of durable consumer goods by 0.1% on the month and 3.7% year-on-year and capital goods prices by 0.3% on the month and 3.8% year-on-year.