Inflation is a general rise in prices for goods and services, which in turn, under the influence of certain factors, can lead to the depreciation of money.
If we consider specifically Germany, then the inflation rate in its territory averages about two and a half percent. A value less than two is considered optimal. If we consider fluctuations in inflation deutschland historisch over the past ten years, we can note the characteristic volatility.
Causes of inflation
Due to the recent situations in the world, the following reasons for the accelerated price growth in 2022 can be identified:
- military operations on the territory of Ukraine;
- an impressive list of imposed sanctions;
- rigid political prejudices;
- slow increase in interest rates;
- active functioning of bond redemptions through specialized programs that involve long-term planning in this area of activity;
- problems with the supply of many goods, including fertilizers;
- reduced credit conditions and requirements for borrowers;
- rising costs for electricity, especially gas and oil;
- increased labor costs due to deglobalization in particular;
- lack of necessary transport capacities.
Probability of hyperinflation
Along with the concept of «inflation» there is «hyperinflation», which means a rather high growth rate for services and goods. In order for this economic situation to officially occur in the country, it will be necessary to reach a mark equal to fifty percent.
Of course, such a phenomenon does not cause positive thoughts either among the government or among the people due to the possibility of depreciation of the monetary currency.
In Germany, experienced experts are trying to figure out what the state expects by 2030. According to their forecasts, citizens expect the following points:
- the necessary protective measures regarding monetary policy will be taken;
- the prospect of hyperinflation is considered quite high today;
- you can try to invest part of your foreign exchange savings in safer assets, but this does not mean that there will be no growth spurt for this particular group of goods;
- Central banks have the right to use some tricks to contain undesirable growth rates;
- in such unstable conditions for the future, the possibility of lending is reduced to a minimum due to the increased distrust of banking structures.