Scholz is being blamed for ‘exacerbating the problem and ignoring citizens’ in Germany.
Chancellor Olaf Scholz has been chastised for “ignoring the needs of citizens” and “exacerbating the inflation problem.”
Inflation in Germany recently reached its highest level in nearly three decades.
According to the nation’s Consumer Price Index, the Federal Statistical Office of Germany forecasted a 5.3 percent inflation rate for December 2021.
In November 2021, this will be (plus)0.5%.
Meanwhile, Germany’s inflation rate for 2021 is expected to be (plus)3.1 percent.
Inflation has risen sharply across Europe, owing in part to economies reopening following the pandemic.
People are spending more money now that the coronavirus restrictions have been lifted, but many businesses are struggling to meet the increased demand because many operations were scaled back during the pandemic.
Rising energy prices have exacerbated the problem, causing prices to rise even more.
Dorothea Siems, a German economist, has argued that the new German government, led by Olaf Scholz, is at least partly to blame.
She claimed that Mr Scholz’ “bold monetary policy” has resulted in “additional price pressure” by “doing everything possible to aggravate the problem.”
She cited the increase in the minimum wage as a primary cause of inflation, claiming that it “threatens to set in motion a wage-price spiral.”
“Despite the high risk of inflation, the traffic light coalition adds to price pressure,” she said.
“Whether it’s the nuclear phase-out, the minimum wage, or Europe’s debt rules, the ruling parties’ agenda is doing everything they can to exacerbate the problem.”
“Inflation keeps rising.
“Inflation rose to 5.3 percent in December, the highest level since 1992, when the reunification boom temporarily accelerated inflation.”
“However, this time it is a combination of acute economic problems and daring monetary policy that is driving prices up, rather than a boom.”
“At the moment, the coalitionists are doing everything they can to exacerbate the problem,” she continued.
“Inflation will be pushed higher this year by the increase in the minimum wage to twelve euros.
“A wage-price spiral is on the verge of being set in motion.”
She also chastised the government for its “absurd” decision to phase out nuclear power.
“In other places as well, the federal government simply ignores the price-driving effect of its policy,” she wrote in the German publication Welt.
“The fact that Germany is not only phasing but also phasing out.
“News from the Brinkwire.”