German factories battered by biggest price shock since records began as Russian gas chokehold sends bills soaring
German factories have been battered by their biggest price shock since records began as Russia’s chokehold on energy supplies caused bills to rocket.
Prices for industrial products were 45.8 per cent higher in August than a year earlier, according to Germany’s Federal Statistical Office.
This was the biggest jump since the data began in 1949 and the country was divided between East and West.
Energy costs: Workers at the VW plant in Wolfsburg. Prices for industrial products were 45.8% higher in August than a year earlier, according to Germany’s Federal Statistical Office
The figures will pile pressure on Chancellor Olaf Scholz’s three-way coalition, which is trying to protect families from soaring gas bills.
Germany’s central bank, the Bundesbank, recently warned of ‘mounting signs of a recession’.
The FSO said energy prices have jumped 139 per cent over the past year, and between July and August they shot up by 20.4 per cent as Russia first reduced supplies of gas through the Nord Stream 1 gas pipeline before turning it off entirely.