Inflation in Germany hits double digits for the first time since WWII

[Husires]

CPI shoots up from 7.9% to 10%

Food Inflation                            15.7 %                          Aug/22
Inflation Rate YoY                    10 %                          Sep/22
Inflation Rate Mom                    1.9 %                          Sep/22
Core Consumer Prices              114 Index Points                  Aug/22
Core Inflation Rate                    3.5 %                          Aug/22
CPI Housing Utilities                    120 Index Points                  Aug/22
CPI Transportation                    119 Index Points                  Aug/22
Harmonised Consumer Prices     122 Index Points                  Sep/22

Source ---> https://take-profit.org/en/statistics/inflation-rate/germany/

[1714672095]

1714672095

[1714672095]

1714672095

[1714672095]

1714672095

[1714672095]

1714672095

[1714672095]

1714672095

[hugeblack]

Yet another developed nation and a very similar story again. All this can be directly owed to nothing but COVID. There was a hell lot of fiscal deficit generated by various countries first to fund the vaccines programs and then for distribution of the same. Some countries even gave a lot of freebies to the normal people which has also led to a lot of wasteful expenditure, ultimately someone has to foot the bill for these expenditures, eventually, this is footed by inflating the currency as a whole which leads to currency becoming devaluating the currency.

I can understand that COVID-19 and all the economic consequences have contributed to the poor economic situation of many countries, but a strong economy like the German economy needs more than one blow to reach inflation levels of 10%, and therefore it is not logical to blame the pandemic.
What is happening are profound changes in the global economy.

[so98nn]

That’s interesting news from a very developed nation as well as economical strong nation that is Germany. I was just searching few articles to see where at Germany stands in terms of GDP. Surprisingly developing nation like India is 5th in the rank just behind Germany which is 4th in rank by means of their GDP. The GDP’s are at $3.2 trillion and $4.2 trillion for India and Germany respectively. If Germany Keeps its growth like this (steady & into inflation) then it’s projected that India might cross Germany in terms of GDP. However there is one hurdle in this, Germany needs to be at stagnancy while India needs to be at 7 percent per annum.

Im amused why Germany is slowing down like this and that’s why made Short comparison. They can do better I think and I don’t think we should blame on pandemic all the way up. Since India thrived anyways they never stopped growing. Germany can too.

[Lucius]

It seems that everyone is worried about inflation, but reading this part of the forum in the last half year I got the impression that everyone is fascinated with Germany or the US, as if the rest of the world lives in prosperity and inflation no longer exists. Although Germany is always perceived as some kind of leading economy of the EU on which everything depends, I think that this will gradually come to an end, because as the leading country of the EU, it was they who created the policy that created such a great dependence on Russian gas and oil.

Now that Merkel is no longer present in the political arena, the political influence of that country will weaken considerably within the EU, and even more so in international relations. In addition, Germany's position in terms of military aid is very bad when it comes to Ukraine, so the question arises as to why they are so restrained in contrast to others, but perhaps one should ask their Israeli friends who share their attitude.

It is incredible that in the light of what is happening, some things come to the surface and that those who have experienced great suffering in their history have no sympathy for the suffering of others. Regarding inflation in Germany, there is a very appropriate statement that says "as you sow, so shall you reap". The only problem in all of this is that Germany is part of the EU and the Eurozone, so everyone will suffer the consequences - but that's why there will be more and more countries that will go in the direction of Hungary or, more recently, Italy.

[be.open]

Im amused why Germany is slowing down like this and that’s why made Short comparison. They can do better I think and I don’t think we should blame on pandemic all the way up. Since India thrived anyways they never stopped growing. Germany can too.

The recent sabotage on the Nord Stream is a control shot in the head for the German economy. It is still moving, but already an economic corpse. I did not look at the latest statistics, but in July industrial inflation in Germany exceeded 37%, that is, the production of goods in Germany rose by more than a third in a year. This is a fairly reliable leading indicator for consumer inflation.

[logfiles]

Yet another developed nation and a very similar story again. All this can be directly owed to nothing but COVID.

Really, and how about the war that has been going on in Ukraine. If COVID-19 even slightly led to inflation, then that war obviously made it much worse. Look at the graph again, if the major cause was COVID-19, then it shouldn't have been moderately sideways during the time when the pandemic hit so hard but when the war started, things just went uphill

I am thinking this is all due to the spillover effects of Sanctions

[BIT-BENDER]

More sad story about Inflation, top nations are battling the current global inflation now imagine what a third world country is going through right now.
Germany is part of the countries in Europe that have experienced a good economy for a long time, I have always had much respect for the leadership of the country and how policy are made by the government. So if it had gotten to the stage in the country inflation crises then its a matter of time before more policies are made to tackle it. I would love to see a country that tackles inflation without making life more difficult for its citizens. Probably with the global economic meltdown and inflation taking over leaders would look into a more digital currency approach.

[romero121]

More sad story about Inflation, top nations are battling the current global inflation now imagine what a third world country is going through right now.
Germany is part of the countries in Europe that have experienced a good economy for a long time, I have always had much respect for the leadership of the country and how policy are made by the government. So if it had gotten to the stage in the country inflation crises then its a matter of time before more policies are made to tackle it. I would love to see a country that tackles inflation without making life more difficult for its citizens. Probably with the global economic meltdown and inflation taking over leaders would look into a more digital currency approach.

World's grown nations experiencing the worst, what'll be the situation of the third world countries. More third world countries on the edge. Situations same as that we encountered with Sri Lanka can happen. From the covid-19 the country seems to experience its hard days as majority of its economy is dependent over the automobile industry. Germany's workers shortage is also considered as a major reason for the economic situation.

[adaseb]

From what I understand their inflation is very bad because energy costs are so high they affect the suppliers. Since electricity is so expensive, the manufactures need to add costs to their products, and there is still expensive freight and costs to maintain a superstore cooled and stocked and everything.

I just think with Covid first, and then the war with all this energy crisis, they picked the worse time to be energy efficient. Hopefully they will have enough natural gas for the winter. According to the latest report they seem to be stocked for the entire year.

[blockman]

Too many factors and one strong economy like theirs are also experiencing this much inflation. Isn't there something to do with the war in Ukraine-Russia and oil-related matters?
And all of these combined deterrents have made them, also some other countries that have strong economies experience high inflation rates. This is one hell of a reset and nobody's going to skip it, if there are, they're just a few.

[jaberwock]

Too many factors and one strong economy like theirs are also experiencing this much inflation. Isn't there something to do with the war in Ukraine-Russia and oil-related matters?
And all of these combined deterrents have made them, also some other countries that have strong economies experience high inflation rates. This is one hell of a reset and nobody's going to skip it, if there are, they're just a few.

There aren't any, I have been checking world economy for many years in my job now and I can tell you that there isn't a single nation that is not having a hard time, and if Germany does then it is likely that everyone else would too because Germany is the best nation when it comes to making sure economy is doing fine. Of course some nations are doing far worse than Germany, it's clear that everybody is having hard time right now, and some are doing worse while others are doing fine.

In this situation, Germany is still fine, not doing great but compared to many others they are still doing better and that is why we shouldn't take them as base example.

[South Park]

More sad story about Inflation, top nations are battling the current global inflation now imagine what a third world country is going through right now.
Germany is part of the countries in Europe that have experienced a good economy for a long time, I have always had much respect for the leadership of the country and how policy are made by the government. So if it had gotten to the stage in the country inflation crises then its a matter of time before more policies are made to tackle it. I would love to see a country that tackles inflation without making life more difficult for its citizens. Probably with the global economic meltdown and inflation taking over leaders would look into a more digital currency approach.

This is is going to be difficult since governments do not really have too much room to maneuver, due to the pandemic they had already printed too much money and printing even more is not a good idea, also a great deal of them are heavily indebted as well, the private sector of the economy seems like they are just waiting on the sidelines as this is not the right moment for them to invest, while consumer consumption is down as people are worried about what is happening, so I do not see how inflation can be tackled without affecting significantly the citizens of their nations.

[Ultegra134]

Yet another developed nation and a very similar story again. All this can be directly owed to nothing but COVID. There was a hell lot of fiscal deficit generated by various countries first to fund the vaccines programs and then for distribution of the same. Some countries even gave a lot of freebies to the normal people which has also led to a lot of wasteful expenditure, ultimately someone has to foot the bill for these expenditures, eventually, this is footed by inflating the currency as a whole which leads to currency becoming devaluating the currency.

I can understand that COVID-19 and all the economic consequences have contributed to the poor economic situation of many countries, but a strong economy like the German economy needs more than one blow to reach inflation levels of 10%, and therefore it is not logical to blame the pandemic.
What is happening are profound changes in the global economy.

Actually Covid 19 isn't the only issue. It started with COVID 19 then followed by the Russian Ukraine war as well which has led to the increase in energy prices. All this has increased government spending a lot and then obviously how badly companies have been affected by all the things leading to lesser taxes as well all this gives a cascading effect to create more inflation.

That is not entirely true. Gas, CNG, and electricity prices were already on the rise even before the end of summer 2021, due to a mixture of policies to ban coal-fueled plants, which are popular in Europe in an attempt to switch to greener alternatives. Certainly, the Ukrainian-Russian war was the icing on the cake, but honestly, I believe that all this fuel and energy crisis is also, to some degree, pure speculation. Electricity and fuel providers are recording massive profits during the past year, placing a huge burden on consumers throughout Europe.

That's the price you pay when you're dependent on Russia's oil and CNG, along with placing sanctions against a superpower.

[Hydrogen]

There's no doubt we have inflation. Does anyone have good ideas of how to address and fix the issue?

I wonder if there are independent organizations anywhere in the world who work to alleviate these types of economic issues. We have food banks and similar programs to help feed the poor. Charities and non profits.

But I think the scale and scope of those programs is too small to handle the widespread inflation that we're seeing this year. Efforts to address inflation will need to be scaled up and restructured. If standard of living is to be maintained.

There are search engines like ecosia which claim to plant a tree to address climate change for every # number of times their search engine is used. Similar programs to plant food to boost supply and limit inflation might help. But the lag time of farming could be critical. Even with a harvest time of 90 days, there would still be a 3 month lag time.

[Sithara007]

A lot of people are claiming that the current spike in inflation has more to do with the war between Russia and NATO. That is not the case. If you guys remember, two years ago, most of the countries went on a banknote printing spree giving the excuse of COVID 19 pandemic. The M1 monetary supply in many of the countries incased by as much as 400% in a span of two years. This is mainly responsible for the double digit inflation which we are witnessing right now. The excuse about war and high energy prices is just a tactic to divert our attention.

[Poker Player]

A lot of people are claiming that the current spike in inflation has more to do with the war between Russia and NATO. That is not the case. If you guys remember, two years ago, most of the countries went on a banknote printing spree giving the excuse of COVID 19 pandemic. The M1 monetary supply in many of the countries incased by as much as 400% in a span of two years. This is mainly responsible for the double digit inflation which we are witnessing right now. The excuse about war and high energy prices is just a tactic to divert our attention.

What you say is not entirely correct. You are partly right, and the rise in inflation started before the war, partly because of massive printing policies and but also partly because of green energy policies.

There's no doubt we have inflation. Does anyone have good ideas of how to address and fix the issue?

Producing energy as if there were no tomorrow.

With abundant and cheap energy, inflation would be at least halved, as energy costs are then passed on in a multitude of goods and services, starting with groceries.

I wait to see what stompix has to say to this, as I think he either lives in Germany or knows very well what is going on over there.

[$anounimus$]

It is no secret that the German people had a difficult time recovering economically after World War II. If inflation reaches 0.25% per month, that is a 12.5% ​​annual rate. And once the EU factors in its own version of QE, it can be bad news for those on regular incomes.

If I am not mistaken, The US is preparing a tight budget which could further affect their economy as well. On the other hand, what they are doing is alleviating the financial crisis they are facing.

Which decision will cause more economic turmoil in Europe, and the world?

[Sithara007]

Be prepared for even more pain. In less than a month, the mid-term elections in the United States will be done with. And once that is done, the Americans will stop selling crude oil from the SPR, and we can expect Brent crude prices to reach three digits once more. And the Western nations are discussing about imposing a price cap on Russian crude. Russia has threatened to stop exporting crude oil if that happens. And this will result in crude oil prices rocketing to levels never seen before in recorded history.

[virasisog]

Be prepared for even more pain. In less than a month, the mid-term elections in the United States will be done with. And once that is done, the Americans will stop selling crude oil from the SPR, and we can expect Brent crude prices to reach three digits once more. And the Western nations are discussing about imposing a price cap on Russian crude. Russia has threatened to stop exporting crude oil if that happens. And this will result in crude oil prices rocketing to levels never seen before in recorded history.

This will surely result in chaos in the coming days. Each country wants to take full control of its crude supply and if both USA and Russia will hold the oil supply, the price will kick double or triple which simply means that the inflation would rise even more.
Countries should really have strong preparation and find other alternatives to resist the possible worst scenarios. It's better to be prepared than to see our economy fall continuously. The oil supply problem I guess would last longer.

[South Park]

Be prepared for even more pain. In less than a month, the mid-term elections in the United States will be done with. And once that is done, the Americans will stop selling crude oil from the SPR, and we can expect Brent crude prices to reach three digits once more. And the Western nations are discussing about imposing a price cap on Russian crude. Russia has threatened to stop exporting crude oil if that happens. And this will result in crude oil prices rocketing to levels never seen before in recorded history.

This will surely result in chaos in the coming days. Each country wants to take full control of its crude supply and if both USA and Russia will hold the oil supply, the price will kick double or triple which simply means that the inflation would rise even more.
Countries should really have strong preparation and find other alternatives to resist the possible worst scenarios. It's better to be prepared than to see our economy fall continuously. The oil supply problem I guess would last longer.

The problem is that not everyone can do something about it, oil is a strategic resource and not every country has it, so even if the politicians leading a country were very diligent on their jobs and they kept a reserve in the case the price skyrocketed, such a reserve is not infinite and at some point it will run out, and then they will have to buy at the new and inflated price, bringing high inflation to their country despite their best efforts to avoid this.