In contrast to previous years, in 2022, Germany will see a high rise in inflation. This year it reached an unprecedented percentage – 8.2.
The last time a similar situation was observed during the oil crisis.
Dealing with the question of what causes inflation in Germany, there are many forming factors. So, inflation Deutschland historisch has a number of reasons:
- significantly increased the cost of acquiring resources such as oil and gas;
- the devaluation of the euro led to higher import costs;
- the tough policy that arose against the backdrop of the coronavirus;
- sanctions, the reverse side of which is damage to one’s own state;
- war in Ukraine;
- quarantine in China is the main reason that led to the lack of transport capacity;
- requirements for lending have undergone significant changes, which had an impact on the growth of inflation;
- reduction of economic trade and investment between countries, as well as an increase in wage costs;
the emergence of problems with the supply of certain goods to the German market.
If the situation continues to develop in this vein, then inflation will reach a catastrophic scale.
How not to go bankrupt during inflation in Germany in 2022
Compared to June 2021, the inflation rate has risen significantly. The German economy has undergone significant changes and is now lagging behind countries such as the United States of America and the United Kingdom.
To curb inflation, the European Central Bank (ECB) needs to significantly raise interest rates in the short term, which is not possible.
Inflation led to the depreciation of money and rising prices. Their purchasing power is significantly reduced, for the usual 100 euros you can buy fewer goods or products, which significantly affects the well-being of citizens, the capital and savings of the indigenous people of Germany.
Inflation, fueled by rising prices, requires higher wages as the purchasing power of the euro gradually declines. This leads to a systematic decrease in the profits of companies and enterprises.
In order to avoid bankruptcy and incurring losses, enterprises are forced to adjust to the level of inflation by raising prices for their products. As a result, a vicious circle is formed, the effect of which is enhanced.