Producer prices have never risen as fast as they did in August. If this continues, it will no longer make sense for any manufacturer to produce in Germany. The country is at risk of deindustrialization, writes the German publication Focus online.

Worries that this will happen have been worrying the industry for weeks, as it has become clear that energy for industrial processes has become unimaginably expensive. This week, that concern received official, confirmation that these concerns are not coming from nothing: the Federal Statistics Office estimated that producer prices - increased 45.8 percent in August. Such an increase has not been seen since statistics began in 1949.

This shows that inflation is extremely high and that production in Germany is becoming too expensive. It is cheaper in other countries. Thus manufacturing in Germany is dying out, which is a sign of deindustrialization.

Large corporations like BASF, Siemens, or Volkswagen may be able to withstand the surge in energy prices because they can produce in other parts of the world, where it is cheaper. But smaller companies suffer because they can no longer compete because of skyrocketing costs. They have to shut down or relocate, both of which lead to deindustrialization.