Germany's producer price inflation accelerated unexpectedly to a new record high in July. Producer prices grew 37.2% year-over-year in July, well above the 32.7 percent surge in June. Among other components of the producer price index, prices of intermediate goods increased 19.1% and those for capital goods grew 8.3%.
Evonik Industries AG, the world’s second-largest chemical producer with plants in 27 countries, is substituting as much as 40% of its German gas volumes with LPG and coal, and passing some higher costs on to customers. Europe’s largest copper producer, Hamburg-based Aurubis AG, aims to minimize gas use and pass on power costs to customers.
Background:
Low water levels affects trade along Rhine river.
German electricity up almost 500% from 1 year ago.
Farmers protest climate change policy by German politicians.
German gov't introduces new tax on gas users in October.
German politicians continue to play sanction games with Russia's gas turbines.
