Inflation in Germany was expectedly high

Inflation in Germany was expectedly high
Photo by Mike Cho / Unsplash

The eurozone's strongest economy continues to face challenges. Expensive energy increases the cost of producing goods and services, which is quickly passed on to consumers.

Also, domestic liquidity in Germany has begun to shrink due to the EU's earlier plan to support crisis countries at the expense of more affluent ones. The ECB is withdrawing money from the debt securities of Germany and investing in Italy, Greece, and other countries.

This also affects the producers, it is more difficult for them to get loans on weekend conditions, which also reduces and raises the cost of production.

Therefore, inflation in Germany was 0.9% on a monthly basis, up from 0.1% last month. On an annualized basis, prices rose 7.5%, down 0.1% for the year.