- German industrial goods cost 45.8% more in August than the same month last year.
- This is the highest rate of inflation since records began.
- The price of energy went up by 139% from August of last year to August of this year and by 20.4% from July to August.
As the price of energy keeps going up, it keeps putting pressure on German industrial sector, which caused producer prices to rise to their highest level ever.
The Federal Statistical Office said on Tuesday that industrial goods cost 45.8% more in August than they did in the same month last year. This is the highest rate of inflation since records began.
The price of energy went up by 139% from August of last year to August of this year and by 20.4% from July to August.
Prices of intermediate goods were the same in August as they were in July. This gives people hope that the year-over-year rate of price inflation for consumer goods will soon reach its peak.
Basic chemicals, fertilisers, and nitrogen compounds kept going up in price by a lot, but the price of wood went down by 12%.
This month, the German government promised €67 billion to help struggling energy companies.
This comes as worries grow that rising prices will cause a wave of bankruptcies in the European energy sector.
According to the Ifo think-tank in Munich, Germany’s economy will shrink next year because rising energy costs will cut people’s disposable income and cause them to spend less.
