German inflation hits 70-year high as economists warn of deep recession risk

German inflation soared to double-digit levels for the first time in more than 70 years, underlining the precarious state of Europe’s largest economy, which leading economists warned could shrink by up to 7.9 per cent next year in a worst-case scenario.

Chancellor Olaf Scholz responded to soaring energy costs on Thursday by announcing plans for a €200bn cap on gas prices, which he described as a “defensive shield” to be financed…