Posted on 11/09/2023 1:56:46 PM PST by Cronos
BUSINESSGERMANY German inflation drops to lowest level in over 2 years 11/08/2023November 8, 2023 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.
https://p.dw.com/p/4YZrs Olive oil on sale in a supermarket Food price rises are still high year-on-year, but they appear to be on a downward trajectoryImage: Snowfield Photography/picture alliance ADVERTISEMENT 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 than earlier in the year when it was more than 8% year-on-year.
A drop in energy prices of 3.2% was particularly potent in driving down the October figure. A surge in energy prices that followed Russia's invasion of Ukraine in February 2022 previously played a major role in pushing prices upwards.
However, while fuels fell markedly in price, electricity remained noticeably more expensive, up 4.7%.
Food prices increased by 6.1% in October compared to the same month last year, although the rises showed another slowing down compared with previous months. In September, food prices rose by 7.5% year-on-year, and in August by 9.0%.
How significant is the decrease? "The inflation rate remains high in the medium and long term. In particular, the increased prices for food and energy over the long period of war and crisis continue to be noticeable for consumers," said the president of the Federal Statistical Office, Ruth Brand.
"The price increase at the consumer level is currently easing somewhat," she added. "The annual inflation rate for food has continued to weaken and most energy products have even become cheaper within a year."
Looks like you were wrong again about the impact of cutting off Putin’s gas
👅👅👠👠
 | Cronos Since May 1, 2001 |
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However it's safe here - the war is 800 miles away. Got my citizenship a few years ago (the trickiest part was learning the language) - and it is a lovely place to stay
Russia Today is airing an insane clip of a freezing and starving European Christmas
https://www.reddit.com/r/UkraineWarVideoReport/comments/ztphsh/russia_today_is_airing_an_insane_clip_of_a/?rdt=45220
TUCKER CARLSON: Thanks to Biden’s religious war in ...
Oct 27, 2022 — In the U.K., the government projected that more than 10,000 Britons will freeze to death, will die, this winter for lack of heating fuel—freeze ..
https://twitter.com/TuckerCarlson/status/1586065636358328322
That’s demand destruction, probably a duo of reduced mooseslime importation and the general EU malaise...
“That’s demand destruction,”
This.
Milton Friedman types poo poo the idea of cost push inflation, but in the case of oil I think it is real. Petroleum is key to so much of the production, packaging and delivery cycle of all types of products and services. Dramatic increases in the cost of oil products can’t help but result to significantly higher costs to the ultimate consumer.
What?
I’ll tell you in pictures so even you can understand.
When people are losing jobs and real net wages are going down, a report of slowing inflation (because the economy isn’t doing as well) is a side effect from a very bad thing.
Genius, just look at how great our inflation was 2008 - 2010?!?!?! It was actually negative for a while! https://external-content.duckduckgo.com/iu/?u=https%3A%2F%2Fwww.realpage.com%2Fstorage%2Ffiles%2Fblog%2Fposts%2Fimages%2F2022%2F09%2Fcpijune-graph-071322.png&f=1&nofb=1&ipt=30c7a866b0bc9e8bdfabca7b68124afdfb792699526f0b7aabebe75665d6d179&ipo=images BTW, do you see what inflation is doing at the end of the chart? The Germans pursue a much more conservative monetary policy than we do. Because of their history with hyper inflation, they don’t add to the money supply like we do: https://en.wikipedia.org/wiki/Hyperinflation_in_the_Weimar_Republic We tend to be —FAR— more liberal when it comes to expanding the money supply. So, what that causes is them having a contraction and lowering of inflation, whereas we print more and you have more money chasing the same or even less goods and services, i.e. higher inflation.
You’re like a doctor that consoles parents of a kid that just passed away by remaining the parents that their kids carbon footprint has significantly been reduced.
Falling fuel prices? No comprende!
So let me get this straight, when inflation is rising and out of control, food and energy are excluded. But when inflation is supposedly dropping, it’s okay to include energy. Got it.
Looks like you’re trying to start flame wars, again.
Looks like you’re trying to start flame wars, again.
They got nothing - not even the crumbs from Vicky Nuland's bag of cookies.
Absolutely correct.
Oil price shocks drove up inflation in the 1970’s. Oil price declines drove down inflation in the 1980’s.
All the Friedman quantity theory types missed the 1980s deflation because they were losing at monetary aggregates, not oil prices.
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