The inflation rate in Germany is expected to be +5.1% in February 2022…powered by spiraling energy prices.
“Inflation is like toothpaste. Once it’s out, you can hardly get it back in again.” – Karl Otto Pöhl, German economist, former President of the Bundesbank.
Late last year when it became clear to everyone else that inflation was taking off, German leaders and media insisted that it would only be a temporary phenomenon. But then last December inflation roared to 5.3%, the highest level in close to 30 years. In January, 2022, it eased slightly to 4.9%. But last month’s provisional figures show that it rose again to 5.1%. The inflation toothpaste is out to stay.
All this was well in the works – long before the Russian attack on Ukraine, which incompetent policymakers are desperate to use as a scapegoat. The bitter conflict is certain to make everything even worse. An economic nightmare threatens Germany and Europe.
Still blaming Covid
In its press release, the Federal Statistical Office (Destatis) blames “Covid-19-related effects such as delivery bottlenecks and significant price increases at upstream stages in the economic process” and “uncertainties caused by the Russian attack on Ukraine”, all while underplaying the role of energy costs.
But the table provided by the Federal Statistics Office clearly shows how energy inflation reached a new high last February, soaring to 22.5% year on year!
Not only has Germany shut down most of its existing nuclear power plants and aims to continue on mothballing its fleet of coal power plants, Chancellor Olaf Scholz announced he was suspending gas delivery from the Russian-German Nord Stream 2 natural gas pipeline, which will surely only further exacerbate Europe’s energy supply and potentially destabilize Europe’s economy.
The final results for February 2022 will be released on March 11, 2022.