Tuesday, May 31, 2022

Macroecon 17, Germany's near half-century inflation rate

Germany inflation rate May 2022 is 7.9%, the highest since Dec. 1973, and almost same level in early 1952. 

Source: Trading Economics

Only -0.3% until Dec. 2020, started rising in Jan. 2021 with 1.0%, jumped to 4.9% by Jan. 2022 pre-invasion of Ukraine. Hence, no excuse blaming the Ukraine war as ain cause of inflationary pressure. By Feb 2022 when Russia invaded Ukraine, inflation rose to 5.1%, then March to May 7.3%, 7.4%, 7.9%.

See related reports:

1. German inflation at highest level in nearly half a century
Reuters, MAY 30 20229:36 AM EDT

2. German inflation reaches highest in nearly 50 years
First Published: May 30, 2022 at 8:14 a.m. ET

High energy prices, Germany's and EU's beloved wind-solar did not produce enough power and they have to buy more oil-gas to avoid blackout and prices were rising then. Europe and the world experienced less-windy, less-sunny, more cloudy 2021.

Merkel was a physicist. When she became a big time politician, her political science has prevailed over her physics natural science. And Germany climate-energy policy pivoted away from real natural science and moved towards media-NGOs-multilaterals political science.

Germany is now led by SPD (the political socialists) + Greens (the ecological socialists) + FDP (confused liberals?)

I really wished last year that FDP + CDU + AfD would have been a better coalition than SPD + Greens + FDP.

See also:
Macroecon 14, Macro indicators, inflation rates in selected countries, September 23, 2021
Macroecon 15, US trade, inflation, public debt, November 12, 2021 
Macroecon 16, US inflation classmates in March 2022, April 19, 2022

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