German consumer price inflation started spiking in January 2021, over a year before Russia’s invasion of Ukraine and already hit 6.0% in November 2021. And energy costs had been spiking for a year as well.
The Eurozone is one of the places where a crazed central bank inflicts negative policy interest rates, and thereby negative bond yields, and increasingly negative interest on bank deposits, on the economy and households. The ECB left its negative interest rate policy (NIRP) unchanged at its last meeting, with its deposit interest rate still at -0.5%, and it is still buying bonds.
And for some much-needed inflation humor: In Turkey, which is not in the EU, Erdogan has embarked on the wholesale destruction of the lira by firing recalcitrant central bank heads and replacing them with rate cutters, and they cut its policy rate by 5 percentage points to 14%. And inflation has now exploded to 54%, up from 16% a year ago.Inflation Blows Out in Germany, Spain. Started a Year Ago on Money Printing, NIRP, Supply Chain Chaos. War Threw Fuel on Already Raging Fire | Wolf Street