Good news for the economy and livelihood in Europe
Exciting days for the stock market and the economy and livelihood of Europeans at the end of August. New reports on price growth statistics in Germany indicate a 2% inflation rate, which is the best possible news for the country in the current situation. Concerns about the economic situation in Germany had been raised with the retraction of 0.2% growth in the first three months of this year, accompanied by a 0.1% contraction.
It is natural that this downward trend in inflation rates is related to Germans reducing their spending, and this economy suffers from reduced circulation of money and consumption.
The conditions of increased spending and giving money without a serious increase in prices and inflation are the conditions of a dynamic economy, which the United States is currently striving for under Biden, overcoming the terrible inflation of previous years. Inflation below three percent accompanied by three percent economic growth. A decrease in the inflation rate in Germany is good news in any case.
The European capital market has been encouraged by fresh news about price growth statistics in the Eurozone surpassing previous figures.
Inflation has reached 2.2%, the lowest rate in the past three years, providing a basis for the Central Bank of Europe to lower interest rates again.
European capital markets are already factoring in this decrease in interest rates and have taken it into account in their transactions. Core inflation, which calculates inflation rates without considering specific items such as energy and food prices, is currently at 2.8%, indicating a rise in prices in the services sector.
European experts have specifically warned about the increase in prices in this sector, as autumn and winter approach and the importance of energy prices re-emerges, inflation in Europe may rise. However, experts consider a 25% inflation rate likely for the coming months.
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