European Central Bank rises rates by 0.5%

Re:European Central Bank rises rates by 0.5% by legulere on Thursday July 21, 2022 @11:13AM (#32180366)

At least in Europe it’s more company profits rather than wage raises that cause inflation. In Germany tax revenues went up 10% for wage taxes while going up 30% for company profits last year.

In Germany apartment prices went down in few cities with an overheated market. If prices stagnate long enough inflation effectively makes prices go down like in Germany from 2000 to 2010

[ Parent | on HN ]

Re:European Central Bank rises rates by 0.5% by fleddr on Thursday July 21, 2022 @11:18AM (#32180410)

True, the relation between wages and inflation is complicated.

A lot of companies in Germany (same in the Netherlands) are exporters. The products they produce are not consumed by local consumers, hence higher wages do not increase local inflation.

Similarly, for some companies wages are a limited part of their expenses. Some factories have like 10 workers to produce millions of items of output.

[ Parent | on HN ]