What caused inflation in germany?

Fundamentally inflation is caused by too much money chasing too few productive uses of this money, inflation in 2022 however was mostly caused by price shocks from an interrupted global supply chains going from high costs of container shipping to high oil and gas prices due to the weaponization of oil and gas supplies by Russia during the Ukraine war. It’s also speculated that during the Covid pandemic many households did not travel or spend on luxuries and going out as much as they would otherwise have and that they started to spend this money liberally when covid restrictions lifted. This caused a sudden increase in money chasing goods and decreased price sensitivity led to higher prices.

The effects of inflation are often not directly felt but are played out over a long time, especially long-term investments are vulnerable to inflation.

 

At Horizon65, we created a mobile app that enabled you to check the effect of inflation on your savings.

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