Inflation rate in Germany: The Ukraine war and economy

The goods’ prices have faced 5.5% inflation during the past decades, and this rate of inflation was unprecedented over the past decades. even after the Omicron variant, this rate increased more than before.

The inflation rate in Germany, in February 2022 was about 5.1%. the inflation effects involved price increments in goods, energy, and food.

Even, the rate of inflation has affected the rental rates and services too. In Germany, the most important categories in the consumer price index are Housing, water, electricity, gas & other fuels (32 per cent of the total weight), Transport (13 percent), Recreation, entertainment & culture (11 percent), and food & non-alcoholic beverages (10 percent).

the index also includes Miscellaneous goods & services (7percent), Furniture, lighting equipment, appliances & other household equipment (5 percent), Restaurant & accommodation services (5 percent).

 The remaining 7 percent of the index is composed of Alcoholic beverages & tobacco, Communication, and Education.

in February 2022 inflation rate in Germany reached 5.1%. Germany has faced a 4.9% inflation rate as compared with the last year.

This amount of inflation has a direct relationship with Covid-19 restrictions and the problems that it created for the economy of the world. This rate of inflation was higher than in 1992.

Even, the energy price increment is another factor that has risen inflation. Indeed, the inflation rate in Germany, in January was worsened.

An increment in the energy price had a terrible effect on the price of everything like food, other good, and different services.

In February, household energy and fuels have increased by about 22.5 %. This inflation is continuing continuously.

The Ukraine war is another important reason for inflation   

Indeed, experts expected over 2022, they don’t face inflation, but with the beginning of the Ukraine War, the costs increased.

Before this crisis, Russia was one of the most important sources of producing oil, but after it invaded Ukraine, most European countries decided to boycott it and stop buying oil from it.

So, this matter helped energy prices increment in European countries. Even if this war continues, the inflation rate will become more. 

Before, the war between Russia and Ukraine, Russia was one of the biggest economies in the world. (the eleventh biggest economy in the world), but its conflict with Ukraine changed the situation completely.

Russia was one of the biggest suppliers of goods, energy, and food. As soon as its invasion of Ukraine, the west boycotted this region.

Indeed, these sanctions include freezing of Russia’s central bank assets, targeting of wealthy Russian individuals and some state-owned banks, patricidal access restriction to the international payments system SWIFT and a stop from Germany to its Russian gas pipeline project.

Sanctions’ costs to Russia are partly cushioned by high prices for gas and oil exports and the avoidance of restrictions through trade conducted with third countries, but the net economic impact on the Russian economy will be negative.

overall, we expect actions against Russia could reduce foreign direct investment, leading to outflows of capital, and reducing its long-term potential growth rate.

The war in Ukraine represents a challenge for the global economy harming growth and putting upward pressure on inflation when inflation is already at high levels.

Ukraine is not a significant trading partner for any major economy, but countries such as China, the US, Germany, France, and Italy represent some of the major important partners for Russia.

So, a significant escalation in energy prices due to Russia being one of the world’s largest oil producers and energy exporters will lead to higher inflation.

The consequences of Russia’s invasion of Ukraine

Russia’s invasion of Ukraine will have significant consequences for the future of Ukraine. Even it will cause security for Europe.

Shortly, evidence will show that Ukraine is going to have a worse condition. In this event, West is just a spectator. 

Even, the number of losses is growing more and more, Ukraine’s economic situation will be terrible, and this country is going to have a hard social situation too.

Even it is not clear, how much of its territory Ukraine will still control when the war eventually subsides or ends.

This is a war that a man has set up and it is not clear how much persistence the Ukrainian people will show in this conflict. they may lose an enormous part of their country and it is unclear when will they achieve it again.

The world economic situation after Russia invades Ukraine

the war in Ukraine has had lots of consequences for the EU, and even the world is experiencing awful incidents these days. European leaders have agreed upon supporting the EU economy’s flexibility by reducing imports from Russia.

the Ukraine war that Putin started, has had significant consequences, inflation is rising, the rouble has lost half its value, and Moscow’s stock exchange is closed.

Many international companies, like Ikea, McDonald’s, Visa, and MasterCard have lost the country. Evidence shows that Russia is going to be dependent on China. Generally, all these events are awful and unbearable.

Indeed, after Covid-19, the Ukraine war is another crisis that has been a big hit on the economy of the world.

Ukraine war is a warning for the global economy, even hunger may annoy people for the sake of this crisis.

Ethiopia, Nigeria, South Sudan, Central Africa Republic, and countries in the Central Sahel, among others, are facing alarming levels of food insecurity.

Concerning the fact that Ukraine and Russia, supply one-third of the world’s wheat, hunger can spread around the world. as Ukraine is the most important source of producing bread in Europe, even it is the most important source of producing the world’s oil, this crisis can be annoying for all the people around the world.

The Ukraine war has shown that the EU has a noticeable dependency on Russia. it has shown that Russia and Ukraine have a great role in fulfilling, Europe’s breadbasket.

Russian fertilizer and Ukrainian corn are two important sources of food for farm animals, so these two items lead to meat and dairy production.

Although before Russia invaded Ukraine, Europe agriculture had faced some tensions, this war increased this crisis. So all these production sectors have intensified Europe’s food- production.

As a result of these shortages, inflation is growing and hitting the economy of the country. Even the energy price increment has intensified this crisis too.

Ukraine supplies 57 percent of the EU’s maize imports, 42 percent of rapeseed, and 47 percent of sunflower cake, all of which are packed into animals’ troughs to fatten them up. But Ukraine’s black seaports are shut and trade is non-existent due to the war.

Evidence shows that Ukraine has the most important role in producing Europe’s main agricultural material. The Ukraine crisis proved to the world how much dependent is Europe.

The European People’s Party, the largest group in the European Parliament, called on Tuesday for the Commission “avoid presenting other legislative proposals that have negative impacts on European food security.” 

A spokesperson confirmed this refers both to the F2F strategy and specifically to a proposal on slashing pesticide usage expected on March 23.


Ukraine war has had awful consequences on the Europeans’ subsistence, the latest events have shown, how much dependent is this country.

this country is dependent on Russian fertilizers and imported feed crops from Ukraine. This war will have terrible effects on the EU’s agriculture and foodstuffs.

Ukraine and Russia have cut their exports to the EU, and it has faced a crucial crisis. if this crisis continues for a long time Europe will face a horrible famine. as a result of this war, European farmers won’t have enough fertilizer and crops.

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