German inflation soars as pressure piles on ECB

Inflation in Germany is at its highest point in close to 30 years, raising pressure on the ECB to defend its decision to not tighten its monetary policy.

Compared to November a year ago, German inflation rose by 6%.

The recorded figure came in ahead of the majority of economists’ predictions.

The last time German inflation was at such a level was shortly after the country reunified over 30 years ago.

The ECB, along with other central banks across the world, is doing its best to allay German’s fears, suggesting that the causes are transitory.

Germans, who are able to recall the 1920s and 1940s, are starkly aware of the devastating effects of hyperinflation.

Isabel Schnabel, an ECB executive board member, said in a broadcast interview that “November will prove to be the peak” for inflation in Germany.

“There is no evidence to suggest that inflation is spiralling out of control,” she added.

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