Retail sales in Germany contracted 5.5% month-over-month in April of 2021, reversing from a 7.7% jump in March and much worse than forecasts of a 2% drop. It is the first decline in three months, mainly due to new coronavirus lockdown restrictions introduced in the second half of April including curfews and shop closures and the Easter business in March 2021. Year on year, retail sales were up 4.4%, much less than market forecasts of a 10.1% rise. Increases were seen for non-food products (10.6%), namely textiles, clothing, shoes and leather goods (33.1%) and furnishings, household appliances and building (7.2%). Retail stores with the exception of food retail were closed until the end of April 2020 due to the first coronavirus lockdown. Compared to February 2020, the month before the coronavirus crisis, retail sales were up by 0.8%.
Retail Sales in Germany increased 4.40% in April of 2021 year-on-year in April of 2021, much less than market forecasts of a 10.1% rise. Increases were seen for non-food products (10.6%), namely textiles, clothing, shoes and leather goods (33.1%) and furnishings, household appliances and building (7.2%).
Producer prices in the Euro Area jumped 7.6% from a year earlier in April 2021, accelerating from a 4.3% advance in the previous month and above market expectations of 7.3%. It was the highest producer inflation since September 2008, as energy cost soared 20%. Excluding energy, producer inflation was 3.5%. There is also a base effect weighing as the coronavirus pandemic dented economic activity and pushed prices down last year. In April of 2020, producer prices fell 4.6%. Ireland, Spain, Netherlands and Greece recorded double-digit rates and prices also accelerated in Germany, France and Italy.
EURO-AREA PRODUCER PRICES IN AGGREGATE CONTINUE TO INCREASE WITH THE HIGHEST INPUT COSTS IN THE LAST TWO DECADES, WHICH WOULD DENY THE ECB SCENARIO OF TEMPORARY INCREASES IN INFLATION AND INPUT COSTS.
Producer prices in the Euro Area rose 1 from a month earlier in April of 2021, following a 1.1% advance in the previous month and above market expectations of a 0.9% increase. Cost advanced faster for intermediate goods (1.8% vs 1.3% in March) and durable consumer goods (0.4% vs 0.2%). On the other hand, prices slowed for energy (1% vs 2%) and non-durable consumer goods (0.5% vs 0.8%) while capital goods inflation was steady (at 0.3%).