US Inflation, lockdown in Germany and Britain’s problems

11 Feb 2021

Inflation hasn’t become the main newsmaker, yet. It’ll inevitably become, as economic theory, says. But its time hasn’t come, yet. And yesterday's US CPI data is clear evidence. Consumer inflation came out exactly in line with analysts’ forecasts. At the same time, the rate of its growth is 1.4% on an annualized basis. Of course, it’s not enough to wake up the sleeping beast (the Fed). Meanwhile, the US stock market was under pressure yesterday—especially in the technology sector.

Another important news considered Germany going to extend the lockdown in the camp until mid-March. So, although the statistics on the pandemic are rapidly improving, and the vaccination process is gaining momentum (already under 140 million injections worldwide), the most countries’ economies continue to absorb damage as a result of lockdowns. For Germany, for example, they cost 5% of GDP at the end of 2020.

Meanwhile, Britain continues to reap the benefits of Brexit. More and more companies faced with a new reality. They understand that if they aim to survive, they’ll have to transfer their business to the continent. At least partially. For the UK, this means, at best, the loss of thousands of jobs. From the latest news in this field: British meat processors are experiencing serious delays in exporting products to the EU. (Their current sales are only 50% of the pre-reckoning times). As a result, they massively register businesses in the EU.