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%.
Inflation jumped in Spain to 5.6%, and German numbers are expected to come in at around 6% today. This is totally fine. #Bitcoin $BTC https://t.co/GE4OfPDeSv pic.twitter.com/ApsadCfpDk— Jan Wuestenfeld (@JanWues) November 29, 2021
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.
#30DayMapChallenge 2021 🗺️ Day 22 - Boundaries— David Schoch (@schochastics) November 22, 2021
3 decades after the reunification, there are still (in)visible boundaries between East and West Germany
Code: https://t.co/lE4Qf3ioMT pic.twitter.com/cbkZLNsw0D
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.
Read When Money Dies: The Nightmare of Deficit Spending, Devaluation, and Hyperinflation in Weimar Germany Free Online pic.twitter.com/baZqh3TQPE— Itadory Hjuyii (@itaYuuji22x) November 22, 2021
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.
🧵I understand why many people are concerned about the current very high inflation rates, says @Isabel_Schnabel to @morgenmagazin. We expect inflation to gradually decline towards our 2% inflation target over the coming year.— European Central Bank (@ecb) November 29, 2021