German central bank: Potential double-digit inflation in autumn

DPA via MSN dot com ^ | 8/20/2022 | DPA Staff

[mac_truck]

Inflation rates in Germany could hit double digits in the autumn months, according to estimates by the head of Germany's central bank, Joachim Nagel.

As government measures to curb inflation like substantial cuts in the taxes imposed on petrol and diesel and a standard ticket price of €9 ($9.50) for most rail travel are running out, Germany's inflation rate is set to rise by a good percentage point, Nagel told the Rheinische Post newspaper's Saturday edition.

However, the government is planning to lower value-added tax (VAT) on gas from 19% to 7% in order to aid consumers, to mitigate the effects of a gas surcharge due to come into effect in October.

"Overall, an inflation rate of 10% is possible in the autumn months," he said.

The central bank president pointed to the historic proportions of potential double-digit inflation rates in the country, which were last recorded "more than 70 years ago," when in 1951, inflation hit 11%.

Rising prices will continue to affect Europe's largest economy in the months to come, Nagel predicted. "The issue of inflation will not disappear in 2023," he said, citing reduced Russian gas supplies and soaring energy prices, which had risen more than expected.

[tanstaafl.72555]

HOLY COW!!!

When GERMANY, whose banksters lived under an almost constant awareness of Weimar hyperinflation, and whose discipline in money printing was consonant with Switzerland or Singapore...... when THEY are forecasting 10% or more inflation, you know we are all cooked.

[Jolla]

So I have a question for you economist - if the German inflation goes up and the French or Italian inflation does not how would that affect the euro? Would a loaf of bread in Germany cost 5 euros but in France only 3?

[EEGator]

Double digit inflation and no gas will be awesome.

[blam]

Something Is Looming Geopolitically, And We Better Start Taking It Seriously

"As a result of western governments’ taking collective action under the auspices of a ‘climate change’ agenda, we are on the cusp of something happening with ramifications that no one has ever seen before".

[OpusatFR]

“...the think-tanks and high-minded climate change ideologues do not have the ability to manage a transition and still meet the needs of people.”

There is the flaw in the reasoning. The elite do not care if the needs of the people are met. Depopulation is the goal. Restricted travel is the goal and not a population motoring in EVs.

The goal is population centers with limited travel and opportunities. Can you say Police State?

[GingisK]

Everyone knows what the Krauts do when their money tanks.

[mac_truck]

if the German inflation goes up and the French or Italian inflation does not how would that affect the euro? Would a loaf of bread in Germany cost 5 euros but in France only 3?

Good question...my guess is the price of bread in the Eurozone would still vary depending on the cost/availability of raw materials, energy and labor. EU money printing only adds fuel to the fire across the board.

[drwoof]

Hear that funny noise? That’s the tightening of the screws...

[ding_dong_daddy_from_dumas]

If they had not “adjusted” the formula the number would already be “double digit.”