Inflation does not stop at the French borders. The Covid-19 pandemic and the two-month war in Ukraine are driving up prices in many countries. Direction Germany, the United Kingdom and Kenya.
German inflation hits record high
According to figures for April, inflation is 7.4% over one year in Germany. Concern is mounting over the issue of purchasing power in the country. With a surge similar to the average for the 19 countries in the euro zone (+7.5%), inflation in Germany is therefore also at this level not seen since the creation of the single currency and at the same intensity as in the fall of 1981 with the first Gulf War, the conflict between Iran and Iraq. Forty years later, it’s still a war after a pandemic which, when added together, first causes these shortages, a struggling industrial machine, then this panic on the raw materials markets with the first consequence, and it was very bad lived here this winter when this inflationary spiral was already affecting the Germans, the increase in their energy bill. In a country that already pays for electricity among the most expensive in Europe. The 35% increase over one year could have been very violent for thousands of families, and the same goes for fuels. Germany, unlike France with its rebates at the pump, preferred to pay subsidies to households.
The government considers that this solution put in place at the end of March has had the expected positive effects. A satisfaction expressed Tuesday, May 3 by the Minister of Finance, the liberal Christian Lindner: “With our intervention, we have offset 90% of the additional burden on citizens due to rising energy prices and consumer prices.” To help make ends meet, each taxable employee therefore received 300 euros. The poorest households received an additional 100 euros and the same amount of money per child. Or 600 euros for a family in difficulty with two dependent children, in addition of course to the usual family allowances. Beyond this measure, the government has also announced a sharp reduction in the price of public transport as well as the reduction of the energy tax to the European minimum level on fuels for three months, i.e. a gain for motorists of 30 cents per litre. for gasoline and 14 cents for diesel.
The United Kingdom suffers from inflation not seen in 30 years
The cost of living is one of the main concerns of the British, who will vote Thursday, May 5 for local elections. The government is accused of not doing enough to help households. In an interview on Tuesday Boris Johnson admitted that the government could do more with, for example, an exceptional tax on energy companies or the postponement of certain tax increases, but that the strategy was aimed at the medium or even long term. While the “cost of living” crisis is already affecting thousands of people very concretely: 40% of Britons could find themselves in a situation of energy poverty this fall, food banks are overwhelmed by unprecedented demand.
Not only accused of inaction, the government is even considered disconnected from reality. Just on Wednesday, a minister advised households struggling to make ends meet to choose better in supermarkets, for example by relying on private label. In the interview broadcast Tuesday on ITV, journalist Susanna Reid discusses the case of Elsie, a 77-year-old pensioner who only eats one meal a day and who, to save heating, spends the day on a bus thanks to his senior travel card… Answer from the former mayor of London: “I don’t want Elsie to give up… We’ll talk about Elsie in a moment and what we’re doing, but let me remind you that I introduced the [gratuité des transports pour les seniors !] “ The Prime Minister, in response to another question, said, and I quote that “we can’t help everyone”.
.@susannareid100 tells the PM about 77-year-old Elsie who eats one meal a day and stays on the bus all day to avoid using energy at home.
She questions the PM about the comments he made about people having to make choices about what they spend their money on. pic.twitter.com/26b7kPuBNh
— Good Morning Britain (@GMB) May 3, 2022
In Kenya, inflation is skyrocketing
East Africa’s largest economy is also affected by the surge in world prices. Inflation reached 6.47% in April and the situation is getting tougher for Kenyans. There is a lot of desperation among the population. All products are affected. There is food with sometimes prices that have more than doubled. This is the case for cooking oil and flour, for example. Locally produced fruits and vegetables are also affected because their crops depend on Russian fertilizer. A new blow as the population is barely recovering from the economic crisis linked to the Covid-19 epidemic which has put thousands of Kenyans out of work. Not to mention the drought in the north of the country, another factor in the soaring prices in Kenya.
Faced with this situation, the president announced a 12% increase in the minimum wage. Salary which had not been revalued for three years. Tax measures have also been taken, applauded by the International Monetary Fund. They should reduce the vulnerability of the country’s economy. But in reality, Kenya has little room for maneuver as its debt is increasing. Today, for every shilling collected, more than 60 centimes go to interest on the public debt. All this happens in the middle of an election campaign. The presidential election is expected next August for a change of regime because the outgoing president, Uhuru Kenyatta, cannot run for a third consecutive term. A ballot that promises to be under high tension in this context. Purchasing power is also in Kenya at the heart of the debates.