- It’s worth noting that inflation has been over 7% for the last seven months.
- The country in question had the biggest positive flows of crypto, totaling $2.9 million.
Rising inflation has eroded the purchasing power of the average person throughout the globe, creating a cost-of-living issue. Inflation rates throughout the Eurozone member states have been creeping upwards in recent years due to factors such as the ongoing energy crisis and the region’s uncertain macroeconomic outlook.
The German inflation rate in September hit 10%, the highest level in almost three decades. When compared to August’s 7.9%, this rate shows a significant rise. It’s worth noting that inflation has been over 7% for the last seven months.
Global Economic Downturn
At the same time, the Federal Statistical Office reported on Thursday that harmonized consumer prices (used to make international comparisons) for the country were 10.9% higher year-over-year in September. President of the Federal Statistical Office Georg Thiel attributed the increase to a variety of factors.
Georg stated:
“The main reasons for the high inflation are still enormous price increases for energy products. But we are also increasingly seeing price increases for many other goods, especially food. In addition, the expiry of the 9-euro ticket and the fuel discount increased the price increase in September 2022.”
There were net inflows into German digital asset investment products tied to cryptocurrencies last week, despite the increasing prices. The country in question had the biggest positive flows, totaling $2.9 million, suggesting that institutions there have been amassing cryptocurrency.
However, in countries like Canada and Sweden, institutional holders are selling off their cryptocurrency holdings, contributing to widespread pessimism. The prolonged crypto winter continues in the crypto market with bears dominating the sector.
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