German retail sales declined 1.3% month on month in August, coming in worse than expert’s predictions of a 1.1% decline, according to new data from the Federal Statistical Office (Destatis) released Friday. It follows on July’s downwardly revised 0.7%.

There was a 4.3% decrease in turnover in real terms in retail trade, compared to August of 2021, according to data from Destatis. Retail food sales fell 1.7% on the month and 3.1% over the year, which was a five-year low.

In addition, the data revealed that import prices surged, as industrial output dropped, both of which are strong signs pointing toward the German economy heading into recession. This comes on the heels of last month’s inflation report showing that inflation had hit its highest level in over 25 years, driven by high energy costs, which themselves cut into consumer spending.

Import prices for energy were up 162.4% in August compared to one year prior, while natural gas prices surged 306.3% over one year prior.

The majority of the energy crisis in Europe has been due to surging natural gas prices produced by a mix of sanctions placed on Russia by Western powers following the conflict in Ukraine, and technical problems and sabotage of gas pipelines carrying gas from Russia to EU consumers.

August industrial output was down in August 0.8% over the month, the steepest drop since March, which was the first month after Russia’s initiation of its military operations in Ukraine.

September saw annual consumer inflation rise to a new high of 10%, according to September’s provisional data.