5 Sep 2022

Producer prices in Germany — a leading indicator for inflation — surged 37.2% on the year, the biggest rise since records began in 1949, the federal statistics office said on August 19. The month-on-month rise, 5.3%, was also the highest on record.

 

 

The increases in producer prices were primarily driven by skyrocketing energy prices, which were up 105% compared with the same month last year, the office said.


The German economy stagnated in the second quarter, with the war in Ukraine, soaring energy prices, the covid pandemic and supply disruptions bringing it to the edge of a downturn.


“The significantly lower gas supplies from Russia, the persistently high price increases for energy and, increasingly, other goods, as well as the longer-than-expected supply chain disruptions, also in connection with China’s zero-covid policy, are weighing heavily on the economy’s development,” the finance ministry said.


With uncertainty about the reliability of Russian gas supplies as winter approaches and a levy to be imposed on gas consumers on October 1, inflation is unlikely to abate from the headline rate of currently 8.5% and could reach 9% at the end of August when fuel subsidies expire.

About APLF

We bring leather, material and fashion businesses together: an opportunity to meet and greet face to face. We bring them from all parts of the world so that they can find fresh partners, discover new customers or suppliers and keep ahead of industry developments.

 

We organise a number of trade exhibitions which focus on fashion and lifestyle: sectors that are constantly in flux, so visitors and exhibitors alike need to be constantly aware both of the changes around them and those forecast for coming seasons.

 

APLF Fairs follow Informa AllSecure, Informa’s approach to enhanced health and safety standards at events in the aftermath of COVID-19.

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