Following the Covid-19 pandemic, the massive amount of stimulus, and amid the Ukraine-Russia war, Germany’s inflation has soared. Official data from Germany’s consumer price index (CPI) indicates that inflation jumped to a 10.9% annual pace in September and it’s the first time since the end of World War II that Germany has dealt with double-digit inflation.
All across the world, inflation rates have risen a great deal. Many economists believe that the energy crisis in Europe that is tied to the Ukraine-Russia war is one of the main reasons. However, similar to the United States, the U.K. and Europe deployed massive amounts of stimulus packages in order to shore up the economy amid the Covid-19 pandemic. Germany enacted a vast number of stimulus packages in order to fend off the economic fallout from government-enforced business shutdowns and lockdowns.
On Thursday, Germany’s official CPI data shows the country’s inflation spiked at a 10.9% annual pace in September. Germany’s inflation is up from 8.8% the month prior and it’s the highest inflation rate Germany has seen since 1951, or roughly around the end of the second World War. Inflation came awfully close to double-digits in Germany back in 1999 when the European Union (EU) introduced the euro. Statistics show that Germany’s energy prices are up a whopping 44% in September compared to this time last year.
“The high energy and food prices, which are likely to rise further in the coming year, are causing significant losses in purchasing power,” Torsten Schmidt, the head of economic research at the Leibniz Institute for Economic Research told the New York Times on Thursday.
In addition to the financial disaster caused by the Ukraine-Russia war, Germany was a leader when it came to ushering out stimulus programs. Between February and May 2020, Germany deployed an $844 billion recovery package with roughly $175 billion for stimulus and $675 billion dedicated to lending. The German government also introduced wage subsidy programs which maintained a threshold of providing 60% of employee wages.
The country also introduced a three-month payment moratorium on German-based consumer loans and at the end of June, the German Parliament ushered in another $146 billion stimulus package. Parliament further created a $56 billion rebate package for German residents who purchased electric cars. While Germany’s red-hot inflation is high and economists believe it derived from a three-pronged problem tied to Covid-19, stimulus, and the war in Europe, German bureaucrats are planning to drop another package of subsidies.
At the same time, German inflation jumped to 10.9%, and members of the German Parliament revealed another package for $195 billion. Germany’s latest subsidy package also placed price limits on natural gas. The German government aims to “cushion rising energy costs and the most severe consequences for consumers and businesses,” officials said on Thursday. “Prices have to come down,” chancellor Olaf Scholz told reporters during a press conference. “To make prices drop, we are rolling out a wide defense shield,” the chancellor added.
What do you think about German inflation rising to double digits in September? Let us know what you think about this subject in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Oman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework
Real estate tokenization is set to be incorporated into Oman Capital Markets Authority (OCMA)'s virtual asset regulatory framework. According to an advisor with the authority, the tokenizing of real estate will open investment opportunities for local and foreign investors. Real ... read more.
Following the Covid-19 pandemic, the massive amount of stimulus, and amid the Ukraine-Russia war, Germany’s inflation has soared. Official data from Germany’s consumer price index (CPI) indicates that inflation jumped to a 10.9% annual pace in September and it’s the first time since the end of World War II that Germany has dealt with double-digit inflation.
All across the world, inflation rates have risen a great deal. Many economists believe that the energy crisis in Europe that is tied to the Ukraine-Russia war is one of the main reasons. However, similar to the United States, the U.K. and Europe deployed massive amounts of stimulus packages in order to shore up the economy amid the Covid-19 pandemic. Germany enacted a vast number of stimulus packages in order to fend off the economic fallout from government-enforced business shutdowns and lockdowns.
On Thursday, Germany’s official CPI data shows the country’s inflation spiked at a 10.9% annual pace in September. Germany’s inflation is up from 8.8% the month prior and it’s the highest inflation rate Germany has seen since 1951, or roughly around the end of the second World War. Inflation came awfully close to double-digits in Germany back in 1999 when the European Union (EU) introduced the euro. Statistics show that Germany’s energy prices are up a whopping 44% in September compared to this time last year.
“The high energy and food prices, which are likely to rise further in the coming year, are causing significant losses in purchasing power,” Torsten Schmidt, the head of economic research at the Leibniz Institute for Economic Research told the New York Times on Thursday.
In addition to the financial disaster caused by the Ukraine-Russia war, Germany was a leader when it came to ushering out stimulus programs. Between February and May 2020, Germany deployed an $844 billion recovery package with roughly $175 billion for stimulus and $675 billion dedicated to lending. The German government also introduced wage subsidy programs which maintained a threshold of providing 60% of employee wages.
The country also introduced a three-month payment moratorium on German-based consumer loans and at the end of June, the German Parliament ushered in another $146 billion stimulus package. Parliament further created a $56 billion rebate package for German residents who purchased electric cars. While Germany’s red-hot inflation is high and economists believe it derived from a three-pronged problem tied to Covid-19, stimulus, and the war in Europe, German bureaucrats are planning to drop another package of subsidies.
At the same time, German inflation jumped to 10.9%, and members of the German Parliament revealed another package for $195 billion. Germany’s latest subsidy package also placed price limits on natural gas. The German government aims to “cushion rising energy costs and the most severe consequences for consumers and businesses,” officials said on Thursday. “Prices have to come down,” chancellor Olaf Scholz told reporters during a press conference. “To make prices drop, we are rolling out a wide defense shield,” the chancellor added.
What do you think about German inflation rising to double digits in September? Let us know what you think about this subject in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Oman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework
Real estate tokenization is set to be incorporated into Oman Capital Markets Authority (OCMA)'s virtual asset regulatory framework. According to an advisor with the authority, the tokenizing of real estate will open investment opportunities for local and foreign investors. Real ... read more.
Xrp was up by nearly 10% on Friday, as the token moved closer to a recent four-month high. The move comes as consumer sentiment data in the United States came in at 58.6, which is higher than August’s reading of 58.2. UNUS SED LEO was also in the green, climbing by as much as 12% in today’s session.
XRP was up by over 10% in today’s session, as prices moved closer towards a multi-month high.
Following a low of $0.4285 on Thursday, XRP/USD rallied to an intraday peak of $0.503 earlier in the day.
The move saw the token formerly known as ripple near last week’s high of $0.558, which was the strongest point since May.
As can be seen from the chart, earlier gains have somewhat eased, as the relative strength index (RSI) collided with a ceiling.
The index is currently tracking at 63.81, which is marginally lower than the aforementioned resistance point of 65.00.
Should XRP bulls attempt to recapture last week’s high, then a breakout of the RSI ceiling will need to take place.
Another notable mover in today’s session was UNUS SED LEO (LEO), which trading by as much as 12% higher.
LEO/USD raced to an intraday peak of $4.69 on Friday, which comes less than a day after hitting a low of $4.18.
Today’s rally comes as LEO bounces from a key support point of $4.05. The token is now moving close to a ceiling of $4.80.
In addition to bouncing off the price floor, another reason for the rally was the 14-day RSI breaking out of a ceiling of its own.
The index moved past its resistance of 48.90, and as of writing, is tracking at a mark of 50.96.
Should we see LEO collide with the $4.80 point, then it is likely that traders will move to secure gains, leading to a decline in prices.
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Do you expect UNUS SED LEO to climb and hit $4.80 this weekend? Let us know your thoughts in the comments.
Eliman brings an eclectic point of view to market analysis, he was previously a brokerage director and retail trading educator. Currently, he acts as a commentator across various asset classes, including Crypto, Stocks and FX.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
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