Germany as any other country has been hardly affected by the coronavirus and the lockdown measures that were taken to curb the infections. with the Brexit, Germany lost one of its biggest free trade partners England causing more strain on the European economy. to make matters worse, the chip global shortage caused the manufacturing industry of Germany to lag as the chip shortage mostly affected the tech and Automotive industry.
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This made the few materials available to rise in price which transfers the burden to the finished products. this increase in consumer prices is called the rise in inflation. Germany maintains a negative interest rate policy so having a 4.5% inflation gave Germany its biggest inflation in 18 years.
as the biggest economy in the European Union block, german economic policy affects the euro significantly. as those who have been with me know a rise in inflation creates an attractive tendency to that economy´s currency. one should be mindful of spikes in the euro for trend gains.
I would be careful as we are about to see equilibrium between currencies as most of them have high inflation against their economies.
