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Not from what I know. The high energy costs are due to a effective and possible felt scarcity which occured at the beginning of the war in Ucraine.

The energy companies are now planing to reduce the costs with as much as 25% from next month, since the marked is now flooded with gas and renewables ( a lof of new wind parks and solar installation will go online the next month ).

I honestly I do not know why the interest rates went up. If someone can explain the correlation with the energy price, please do.




There is a correlation. Germany has the reputation of being very concerned with inflation, which happens when the amount of money in circulation grows relative to the supply of goods to buy. When there is a supply shock (such as this energy conflict), inflation is the natural result, but a concerned government can respond by increasing interest rates to reduce the amount of money in circulation. That way they get less inflation than they would have otherwise, at the cost of slowing down the economy.


Energy price -> inflation -> central bank raises rates to cause recession [ -> reduced wage/price feedback loop -> reduced inflation ]

The part in square brackets is yet to come.




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