According to Destatis, the primary driving reason has been the increase in energy prices.
The Federal Statistical Office (Destatis) revealed on Tuesday that Germany’s producer prices registered the largest increase ever recorded in August compared to a year earlier, mostly due to rising energy costs.
Prices increased by 7.9% in August, which is far more than economists had predicted. They increased 45.8% over the previous year. That came after increases of 32.7% in June and 37.2% in July.
Destatis reports that during the past 12 months, energy costs have increased by 139.0%. Electricity costs increased by 174.9% over the previous year. On a yearly basis, the producer price index (PPI) excluding energy increased 14%.
Metals saw significant price rises as well, up 19.9% from August, according to Destatis.
Recently, academics have issued warnings that a recession is imminent in Germany. The Kiel Institute’s analysis from last week predicts a 0.7% fall in the nation’s GDP in 2019. The German economy was expected to increase by 3.3% in 2023, according to analysts in the past.
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