Germany: production costs + 37%. How many companies will close before Germany gives up and demands the opening of Nord Stream 2?
Right now the question is simple: How long will it take before Germany's unconditional surrender? Annual producer inflation in Germany rose to a new high of 37.2% in July 2022 from 32.7% the previous month and above market forecasts by 32%. Energy prices remained the main driver of the increase (105.0% compared to 86.1% in June), in particular the distribution of natural gas (163.8%) and electricity (125.4% ). Excluding energy, producer prices increased by 14.6% compared to a year earlier. Other significant increases were recorded for intermediate goods (19.1%), in particular metals (24.1%), fertilizers and nitrogen compounds (100.4%) and cereal flour (48.9%) ; for non-durable consumer goods (16.2%), such as food (21.1%); for durable consumer goods (10.9%) and capital goods (8%), the largest increase since at least September 1975. On a monthly basis, producer prices increased by 5.3%, the highest historic, after the June figure and the consensus for a 0.6% increase.
Here is a short chart
So, if we want to see this boom in parts more prospectively:
FWith an increase in industrial prices of this kind we will have two effects:
- an increase in inflation in Germany and in countries dependent on German industrial production;
- the international displacement of German productions, which will not be able to compete, on an international level, with those of countries less affected by the energy crisis such as China and Japan.
Today the vice-president of the FDP, a liberal government force, Wolfgang Kiubicki , officially called for Nord Stream 2, a kind of unconditional surrender of Germany to Russia, to be opened. The theme is: if this is to keep the Germans warm and keep the industry going, let's do it, sending to that country both what Scholz said, both the Commission, both Biden, and NATO. A position that was unthinkable until a couple of months ago, but which is coming forward every day in Germany. Meanwhile, Berlin has practically ceased all military aid to Kiev, in spite of Scholz's statements. The Chancellor is now in the bunker, with the Red Army at the gates: how many days will it last before surrendering unconditionally like Admiral Donitz?
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The article Germany: production costs + 37%. How many companies will close before Germany gives up and demands the opening of Nord Stream 2? comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/germania-costi-della-produzione-37-quante-aziende-chiuderanno-prima-che-la-germania-si-arrenda-e-chieda-lapertura-di-nord-stream-2/ on Fri, 19 Aug 2022 13:58:52 +0000.