German inflation jumps to 8.5%

in economy •  2 years ago 

This is based on the EU's harmonised calculation (designed to make it easy to compare countries in the EU). Here is the graph:

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source

It was mainly caused by rising food prices, and the weak euro is the culprit. Importing food from outside the eurozone, like bananas or avocados has become more expensive as the euro weakened against all currencies.

Eurozone inflation stats come out tomorrow, and if it tops 9%, the ECB will come under pressure to raise interest rates to strengthen the euro.

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  ·  2 years ago  ·  

If the ECB doesn't raise rates, I guess the German govt will have to raise tax to curb inflation.

  ·  2 years ago  ·  

The only person in the western world who has done tax hikes to curb inflation, is Rishi Sunak.