German factories hit by biggest price shock since records set as Russian gas choke drives up bills
German factories were hit with their biggest price shock since records began as Russia’s stranglehold on energy supplies sent bills skyrocketing.
Prices for industrial products were 45.8% higher in August than a year earlier, according to the German Federal Statistical Office.
It was the biggest jump since data began in 1949 and the country was split between East and West.
Energy costs: Workers at the VW factory in Wolfsburg. Prices for industrial products were 45.8% higher in August than a year earlier, according to the German Federal Statistical Office
These figures will put pressure on Chancellor Olaf Scholz’s three-party coalition, which is trying to protect families from soaring gas bills.
Germany’s central bank, the Bundesbank, recently warned of “worsening signs of a recession”.
The SFO said energy prices jumped 139% in the past year and between July and August they jumped 20.4% as Russia first reduced the gas supply via the Nord Stream 1 gas pipeline before shutting it down completely.