The rapid rise in energy prices is having an impact on German industry. In September, according to new figures from the German Federal Statistical Office, manufacturers increased their prices more sharply than they have been in almost 50 years. In a year-on-year comparison, producer prices rose by 14.2 percent, the fastest they have been since October 1974. The main cause of the development are the price jumps in energy.
According to the Federal Statistical Office, gas rose particularly sharply in September, with the average price skyrocketing by almost 59 percent. Apart from that, the prices of many materials and intermediate products processed by the industry are also rising. Metals were on average 35.5 percent more expensive than a year earlier. The steel and metal processing trade association has already warned of the threat of a large-scale company dying.
In Germany, the inflation rate in September, at 4.1 percent, passed the four percent mark for the first time in almost 28 years. In the entire euro area, the inflation rate reached 3.4 percent in September, its highest level in 13 years. The statistics agency Eurostat confirmed its previous survey on Wednesday. Inflation was last higher in September 2008. The so-called core inflation rate excluding energy and food also rose, rising from 1.6 percent in August to 1.9 percent.
The steel and metal processing trade association painted a gloomy scenario on the wall. “The rapid rise in prices for industrial electricity and natural gas means for many medium-sized industrial companies in steel and metal processing that they can no longer produce in Germany,” said a statement by the association, which according to its own information represents a good 5000 companies, mostly family businesses . “The backbone of German industry is dying.”
The association appealed to the large corporations to “recognize” the situation of their medium-sized suppliers. The association called on the German government to temporarily forego state levies such as the EEG surcharge, which make energy prices more expensive. (APA / Red)