Inflation in Germany Reaches Highest Level in Over 70 Years
According to a recent report by Germany’s Federal Statistical Office, the country is now facing its highest annual inflation rate in over 70 years.
The office published its initial data on January 5, 2023, which highlighted how full-year inflation shot up to 7.9% in 2022 in the middle of rising energy and food prices.
The last time Germany experienced such a level of inflation was in 1951, when inflation was hovering at 7.6%. For perspective, the annual inflation rates stood at 3.1% in 2021.
In October, inflation in Germany reached a record 10.4% before falling to 10% in November.
The Russo-Ukrainian conflict has largely increased oil and gas prices in large part due to the sanctions and de facto oil embargo the Collective West has imposed on Russia. In addition, cumbersome energy regulations that have promoted inefficient alternative green energy sources have left countries like Germany in a precarious economic situation. It’s undeniable that oil and natural gas are more efficient energy sources that allow for people of all economic backgrounds to economically thrive and participate in a modern economy.
On top of that, loose monetary policies characterize the economies of virtually all nations in the Collective West. The combination of these factors create a nasty inflationary cocktail that most countries aren’t prepared to handle. Once great economic powers such as Germany will be humbled by their defiance of basic economics if they don’t correct course.
The laws of economics are an equal opportunity punisher when it comes to nations who dare violate them.