This measure of German inflation just hit its highest level since 1949

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This measure of German inflation just hit its highest level since 1949
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The price of goods leaving German factories has passed an eye-watering milestone

German annual producer price inflation topped 30% in March, the country's Federal Statistics Office said on Wednesday. That's its highest level since the agency began collecting data 73 years ago.The biggest culprit? Energy prices, which rose nearly 84% from the same month last year. "Mainly responsible for the high rise of energy prices were the strong price increases of natural gas... which was [up] 144.8% on March 2021," the statistics office said in a statement.

According to the International Energy Agency, the country relies on Russia for about 46% of its consumption. An abrupt break with its biggest supplier would likely trigger rationing and inflict severe damage on its energy-intensive manufacturing sector. Economy Minister Robert Habeck has already warned Germans that they"will be poorer" as a result of the war. "It is not possible that this ends without costs for German society, it is unthinkable," he said last month.

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