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Showing posts with the label Inflation

Inflation in Germany drops again in March

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Year-on-year inflation dropped to 2.2% last month in part due to a decrease in energy prices. It remains to be seen whether the European Central Bank will cut interest rates in response to easing inflation. Inflation in Germany dropped in March, Germany's statistics agency Destatis said on Monday. Consumer prices fell to 2.2% year-on-year, compared to 2.5% in February. This is the lowest inflation figure since April 2021, when it was 2%. The annual inflation rate in January of this year was 2.9%. The weakening of inflation has been buoyed by a decrease in energy prices. Energy became 2.7% cheaper in March despite the expiry of the energy price cap at the beginning of the year and the increase in the carbon price to €45 ($48.36) per ton of CO2. Could the ECB cut interest rates? Carsten Brzeski, a researcher at the ING Bank, said that "inflation in Germany could drop to two percent as soon as next month," adding that the rate could slightly increase again in the...

Germany sees inflation ease to 5.9% for 2023

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The cost of living in Germany increased by nearly 6% year-on-year last year, according to provisional figures. While inflation has eased since the start of the year, food and energy price rises remain high. In positive news for businesses and households, inflation for 2023 as a whole fell in comparison with 2022, figures published by German statistics agency Destatis showed on Thursday. However, after months of steady decline, price rises started to pick up again in December. How do the numbers look? Destatis said inflation stood at 5.9% for the whole of 2023, down from 6.9% in 2022 — a figure that had not been seen for decades. Inflation has been falling month by month since June when the last increase was recorded,. Inflation did, however, climb again in December. Consumer prices rose 3.7% year-on-year for December, up from 3.2% in November, the agency said. The monthly figure was elevated in part by stubbornly high inflation in the food and energy sectors, at 4.5% and 4....

German inflation drops to lowest level in over 2 years

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Germany's inflation rate has dropped to its lowest level since August 2021, a phenomenon particularly driven by falling fuel prices. The figure is still higher than it should ideally be. German inflation drops to lowest level in over 2 years Germany's inflation rate has dropped to its lowest level since August 2021, a phenomenon particularly driven by falling fuel prices. The figure is still higher than it should ideally be. Olive oil on sale in a supermarket Food price rises are still high year-on-year, but they appear to be on a  Year-on-year inflation in Germany for October dropped to 3.8%, its lowest level in more than two years, according to final figures released on Wednesday. While the figure is a marked decrease from September's 4.5% rise, it is still far higher than the European Central Bank's target of 2%. What does the latest figure show? The inflation figure, released by Germany's Federal Statistical Office, Destatis, is dramatically lower th...

The German Economy Faces a Shocking Warning: A Looming Risk of a Stock Market Crash

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The stability of the German economy has long been recognized as a pillar of strength within Europe. However, recent developments have sent shockwaves through financial circles, raising concerns of a potential stock market crash. With signs of economic vulnerability emerging, it is essential to understand the underlying factors that have contributed to this alarming situation. In this article, we delve into the issues at hand and explore the potential consequences for both Germany and the global economy. A Fragile Economic Landscape: The German economy, often considered the backbone of the European Union, is currently navigating a landscape fraught with uncertainty. Several factors have combined to create an atmosphere of apprehension among investors and economists alike. First and foremost, the ongoing geopolitical tensions and trade disputes have disrupted international markets, impacting Germany's export-dependent industries. Additionally, the persistent challenges po...

Germany's economic outlook brightens - but still cloudy

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 The short-term outlook for Europe’s largest economy has improved in recent months, a report by the German Council of Economic Experts said on Wednesday, but only to a limited degree. The panel said any upswing looks set to be limited by rampant inflation , tighter financing conditions and sluggish foreign demand. What the experts said The short-term outlook for the German economy has brightened slightly because of an initially stabilized energy supply situation and lower wholesale prices, the report said. The council predicted Gross Domestic Product (GDP) growth of 0.2% in 2023, compared with its previous prediction that it would decline — also by 0.2%. The five experts who compiled the report said they expected growth of 1.3% in 2024. However, they said, the continued upward path of inflation was causing a loss of purchasing power and dampening consumer demand. Meanwhile, rising interest rates worsen financing conditions and were leading to a decline in investments. Altho...

Deutsche Regierung streitet um Geld

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  Der Krieg in der Ukraine erweist sich als teuer, auch in Deutschland, wo die Regierung sparen und entscheiden muss, was wichtiger ist: Internationale Sicherheit oder Sozialhilfe? Geld ist nicht alles, aber ohne Geld lassen sich politische Projekte nicht umsetzen. Den Frust, der damit einhergeht, verspürt nun auch die regierende deutsche Koalition aus SPD, Umweltschützern und wirtschaftsorientierten Freien Demokraten (FDP). Finanzminister Christian Lindner wird voraussichtlich Mitte März die Eckpunkte des Bundeshaushalts 2024 vorstellen. Mit diesem Dokument will Lindner, der auch FDP-Chef ist, eines seiner wichtigsten Wahlversprechen umsetzen: Die im Grundgesetz verankerte sogenannte Schuldenbremse, die Ausgaben auf die Höhe der Staatseinnahmen begrenzt, soll wieder eingeführt werden. Seit Beginn der Coronavirus-Pandemie wurde die Schuldenbremse mehrfach ausgesetzt, was erlaubt ist, wenn sich der Staat in einer finanziellen Notlage befindet. Jeder soll sparen Lindner führt mit sei...