It turns out that state authorities can actually be responsible for a weak national currency, record inflation, and other economy-related issues, and not external factors or a tough global situation. Thus, the main culprit of high inflation in Germany has been found.
Former President of the Ifo Institute for Economic Research Hans-Werner Sinn blames the ECB for soaring consumer prices in Europe. According to the economist, the current inflation rate is already high enough, but things are still getting worse. With producer prices surging by 33.6% in Germany and by over 40% in Spain and Italy, consumer prices, in their turn, are rising by at least a third from the above-mentioned figures. Moreover, Sinn sees no rosy future for the European economy.
In June, annual inflation in the eurozone came in at 8.6%, hitting another all-time high. The biggest contribution came from prices for energy (41.9% versus 39.1% in May), food, alcohol, and tobacco (8.9% versus 7.5% in May), non-energy industrial goods (4.3%), and services (3.4), Eurostat reported.
