German Wholesale Prices Soar 4%, Biggest Jump Since October 2011

Tyler Durden's picture

Two weeks after Germany reported a spike in consumer prices, which jumped 1.9% from a year ago, the biggest annual increased since July 2013...

... overnight Germans got another price shock when the Federal Statistics Office reported that Wholesale Prices rose a China-like 0.8% MOM in January, and advancing 4% year-on-year in January, up from the "mere" 2.8 percent increase in December, and the fastest growth since October 2011, when prices gained 4.1%.

The biggest culprit: prices of solid fuels and mineral oils surged 16.4% from a year ago, although many core products also saw a substantial increase.

The surge in German inflation, at both the consumer and wholesale level since the end of last year is fast becoming a political flashpoint in the country, which faces elections in September, as savers remain burdened with near-zero deposit rates. Calls are mounting for the ECB to start talks over winding down its bond-buying program, which is scheduled to run until at least the end of this year. Last week, ECB policy makers have said they would likely not bring up the topic of further tightening or tapering until at least the middle of 2017, which means that regardless of how high prices rise, Germans willhave to bear with it.

At the end of January, the ECB further antagonized German shoppers when Ewald Nowotny, governor of Austria’s central bank, said “monetary policy can’t just cater to one country but to the entire euro-zone economy,” adding that "German developments are watched, but they are just a part.”

Nowotny said that while the ECB’s Governing Council will “surely” have to take a decision on the future of quantitative easing before the end of 2017, he doesn’t expect that to happen until after the summer.

Will Germany's conservative population remain as patient as the ECB (and Angela Merkel) hopes it will, especially with major a political event on the horizon? We don't know, although for an example of what happened to some less "patient" societies when inflation surged as much as it did last time, look no further than the African Spring, when soaring living and food costs, sparked the biggest series of revolutions (some with the implied assistance of the CIA) in recent history.

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SomethingSomethingDarkSide's picture

But.. Draghi says inflation is low!  He would NEVER lie.

The Saint's picture

OH oh.  Stagflation!

Haus-Targaryen's picture

The real estate and auto bubbles here in the Fatherland are stubborn and refuse to give. 


thesonandheir's picture

The Germans are a lot more clued up when it comes to inflation than the rest of Europe, there was a front page all about it last week in Bild.



Haus-Targaryen's picture

Saw that. 

Best "crash course" I've found for Germans is "Kapital Fehler"


knukles's picture

.... while noting that almost 90% of the increase was from the continued skyrocketing cost of halal foodstuffs.

Manthong's picture

1st  floor…


Ladies lingerie.

Latex products.

Power tools.

Excavation equipment.

Weimar Republic.

Going down.. next floor, basement.

Wang Dang SP's picture

Ha, ha, ha,ha...ooooh.  ~Stephen Tyler

TheGardener's picture

That halal stuff is pretty cheap in Germany but if your local supermarket chain carries it for a prolonged time you

know where the neighborhood goes. It`s cheap because still industrially proccessed non the less and aimed at price

concious consumers who compare prices from "back home". First broken window if you ask me even though the subsidized and pork centered gluttony war against the elderly with pensions just tailored for them to eat themselfes to death is a disgusting sight.

Pork right now cheaper than veggies.

Prices in retail just got another boost from an increase to the minimum wage from Jan. 1 st.. beyond negotiable to those at the lower end,take an offer you can`t refuse to work 2 hours for one hour officially paid or so  , counting time worked has officially gone metric by now, WORK 100 MINUTES PER HOUR !




Never One Roach's picture

Hajibs and burkas are up over 16%!

Handjobs up 22%

...and IEDs a whopping 37% up!

MFL5591's picture

Explains why people want paper not gold!  Laughabale

LawsofPhysics's picture

Not quite. Wages are NOT going up!

The Saint's picture
The Saint (not verified) LawsofPhysics Feb 13, 2017 12:44 PM

That's the "Stag" part.

Belrev's picture

Meanwhile Russian hackers play phone prank on fool Democrat Maxine Waters

Russian hackers called US Democratic representative Maxine Waters and informed her that she is speaking to Ukraine's prime minister Vasiliy Groysman and that Russian army is now occupying all of Ukraine. Also, from this conversation Maxine learned that Russian hackers interfered in elections of a country called Limpopo and installed there puppet president their by the name of Aibolit.

Bay of Pigs's picture

The BLS has been lying about real inflation since the Clinton years.

aliens is here's picture

I quit reading about the Krauts. What are they doing now?

homericninjas's picture

and a happy Heckler & Koch to you as well

bundas kenyer receptek's picture
bundas kenyer receptek (not verified) niemand Feb 13, 2017 12:50 PM


Sudden Debt's picture

This is only the beginning. Wholesale prices are set to jump another 7% in the next 6 months in Europe, and that's if the euro remains stable which I don't think it will do conciderring what France, Greece and Portugal are up to.

LawsofPhysics's picture

Please explain how American "markets" can be rallying on a stronger dollar?

Everyone selling their treasuries and buying stocks?

I call bullshit, show me the central bank balance sheets!!!

Bay of Pigs's picture

PPT and Mo "Bowl Cut" Yellin buying them all?

SomethingSomethingDarkSide's picture

Algo Traders borrow in a currency that will probably be devalued, ie Yen Yuan & Euros, Buy US Stocks, wait for currency to be devalued, then sell into arbitraged profit. 

Arbitraged in the way that Central Banks tell member banks when and how to trade currency movements.  Now, everyone is riding cheaper foreign currency carry trades and US Equities, because what the fuck else are the CB's to do other than ctrl+p and kick the can? 

Markets are forcing the absurdity out of Bankers, begging for boundaries, and are instead being rewarded daily.  Expect a parabolic move upwards before anything even hints at slowing down.  Imagine how far a gangster would go to protect $50k, now imagine a Bankster defending his $5Billion.  We are all just logs to be burned.

LawsofPhysics's picture

Bingo. In other words, global Weimar is on motherfuckers!!!

yogibear's picture

Central banks are out buying stocks. They'll keep bidding the indexes up.

Yen Cross's picture

 I'd fucking bank on it, the SNB was selling euros this morning.  ;-)

Cutter's picture

4 percent annual inflation and the German 10 year sitting at 33 basis points. Obviously the status quo can't continue.

yogibear's picture

However if inflation was 10% the goverment would have to report less than 3% because of all the entitlements.

AC_Doctor's picture

Fuck you very much, Ms. Merkel, you Socialist puppet..

Saratoga's picture

Getting ready to get rid of cash. When they need too many marks for everyday items, the Germans will beg for a solution. I know!!! Go cashless.

yogibear's picture

In Zimbabwe stocks kept going up as printing esculated,

SomethingSomethingDarkSide's picture

Americans are just as dumb as The Zimbies.  As a matter of fact, most people are just plain dumb.  Thank you, public education system!

Fireman's picture

Moar migrants remains on the table.