After the European Central Bank's recent interest rate cuts, Germany, Europe's largest economy, is struggling with stubbornly high inflation. Core inflation, affecting everyday essentials, shows clear signs of resurgence. It will be intriguing to observe whether ECB officials attempt to downplay this scenario or manipulate statistics.
In the currency competition, particularly against the US Dollar, the ECB can't afford to further ease credit conditions, though it's necessary to effectively counter the Eurozone recession.
Germany's inflation rate for June 2024 is projected at 2.2%, measured by the year-over-year change in the Consumer Price Index (CPI). According to preliminary data from the Federal Statistical Office (Destatis), consumer prices are expected to rise by 0.1% from May 2024. Core inflation, excluding food and energy, is anticipated to be 2.9%.
Germany will struggle forever if it has to always pay for other economies. I understand the inflation in energy, but why food and everything else?
reply
160 sats \ 1 reply \ @TomK OP 6 Jul
European farmers in particular are being slammed with regulations from Brussels. this is a clear attack on the established supply chains. this is the center of Davos politics. And this is highly inflationary
reply
American farmers are suffering, too. Especially with all the things that come with farming. ie fertilizer, seed.
reply
Is there a spectacularly long German word for stagflation?
reply
42 sats \ 1 reply \ @TomK OP 6 Jul
Lol. Only 'Stagflation'. I'm sorry
reply
Maybe there will be one soon.
reply
ECB better raise those rates!
reply
If the ecb makes money more expensive, then not only the national budgets of the eurozone members will be brought to their knees, but also the banks. the ecb will have to cut interest rates and if the Fed does not follow suit, they will be totally trapped. always remember that a decade of zero interest rate policy has created a zombie economy on which everything now hangs.
reply
How would you characterise or quantify the velocity of money in euro zone?
reply
Collapsed? Need new lockdowns to push liquidity into the system
reply
I think that the most likely thing is that they will make up the statistics... since Germany is the largest economy in the Eurozone and with so much movement... they must find a way to put up with it there... and as for the percentage of what can affect life daily the cost of things... it is something that is happening in most economies... I have lived in Lima, Peru for 7 years and the economy here is quite fluctuating...
reply
stackers have outlawed this. turn on wild west mode in your /settings to see outlawed content.