Die deutsche Inflation verlangsamt sich im September weiter auf 1,6 %

France, Spain,Italy, and now Germany reported really low inflation rates in September

its pretty likely that the ECB will cut rates again in October, and again in November

which is good news, as lower rates mean low borrowing costs for household, firms and governments, and lower interest payments on government debt

last year, the federal government paid 36 billion euros on interest on its debt alone, up from 3.6 billion euros in 2021

[https://www.deutsche-finanzagentur.de/en/federal-funding/debt-statistics/interest-payments](https://www.deutsche-finanzagentur.de/en/federal-funding/debt-statistics/interest-payments)

it will take some time for interest payments to go down, but nonetheless they are going to be felt in the budget next year

that alone would give more financial space for more investment or more aid to Ukraine

on the European level, a 1 percentage point reduction in interest rate would result in like 40 billion euros less interest payments on debt per year

I wonder how inflation is going in Russia meanwhile.

Sluggish economy just like the germans love it

Another interest rate cut coming?

Meanwhile Poland sits at 4,9 in September, nobody seems to be too alarmed. 🤨

What is Germany doing that gets them below 2% inflation? Is it just because they have had a bit of recession?

In the UK we still can’t break that barrier and start cutting rates to finally stimulate the economy.