Good morning,
Table of Contents
Recently while shopping I had this brief moment of shock. When I reached for the olive oil. Was that really always so expensive?
I bought the oil anyway and forgot about the question. Until this week the Federal Statistical Office answered my question. It was true: the price of olive oil has risen by a whopping 35 percent within a year. However, there is a plausible explanation for this: poor harvests in southern Europe. And so olive oil is fortunately just an outlier in the price statistics. Other prices rose much less – and energy even became significantly cheaper. On average, the inflation rate in August was just 1.9 percent. And thus below the two percent limit for the first time in over three years. That is exactly the limit that the European Central Bank is aiming for.
Which brings us to the most important economic event of the day: The ECB Council will decide today in Frankfurt on the so-called deposit rate. Most people who deal with this as a profession expect the ECB to lower this most important rate. In the end, it controls what interest you and I get on our savings – and what we pay when we take out loans.
13.06.2024 | 3:45 min
If interest rates fall, that would be good for everyone who wants to take out loans. It would be good for the economy, which would then hopefully invest more. But wouldn’t lower interest rates also drive up prices again? To put it another way: is the monster called inflation really under control?
Monetary policy is always a question of the right moment. When inflation rose two or three years ago, the ECB probably reacted too late. The question now is whether the monetary authorities will catch the right moment this time. We will take a close look at what ECB President Christine Lagarde has to say today.
Get through the day safely and without any moments of fear!
Yours, Florian Neuhann, Head of the ZDF Business and Finance Team
Situation in the Middle East conflict
- Guterres calls developments in the Gaza Strip unacceptable: Referring to Israel’s actions against the radical Islamist Hamas, the UN Secretary-General told the Reuters news agency that there had been “very dramatic violations of international humanitarian law and a total lack of effective protection of the civilian population.”
You can find all developments at any time on our topic page for Middle East conflict and anytime here in Liveblog.
What happened in the Ukraine war
- Further aid to Ukraine from the USA: During his visit to Kyiv, Secretary of State Antony Blinken announced aid of more than 700 million dollars, 325 million dollars of which will be earmarked for energy supplies. At the meeting, Ukraine’s President Zelensky again called for the release of long-range Western weapons.
- Ukrainian city plans language patrols: “This is a citizens’ initiative and anyone can become a language inspector,” said the mayor of the city of Ivano-Frankivsk, Ruslan Marzinkiw, to the television station NTA. The background to this is the increasing use of Russian in the region.
What is still important today
Traffic light coalition presents security package to the Bundestag: The SPD, Greens and FDP are introducing the security package to tighten migration policy in the German Bundestag. A debate is planned from nine o’clock, in which Federal Minister of the Interior Nancy Faeser (SPD) also wants to speak.
Now they are crying again: As every year, the disaster warning systems of the states are being tested on today’s nationwide warning day. You can see what the different alarm tones mean here:
Number of the day
In Great Britain, prisons are becoming increasingly full. That is why 1,800 prisoners released early. They were in prison for abusing their partners and wives. The men have only served 40 percent of their sentences so far.
11.09.2024 | 2:36 min
A ray of hope
“Beetlejuice” is back! In the sequel to the 1988 fantasy horror, the Deetz family is once again haunted by the ghost almost four decades later. Even if the plot is a bit thin, Tim Burton relies on the tried and tested spooky visuals, a cast of old and new actors and a pointed, quirky film score.
Said
Our politics sometimes seem aseptic, clinically clean, over-styled, synthetic. And we have to change that. We have to get out into life; where it is loud, where it is bubbling, where it sometimes smells, occasionally stinks. We have to go where it is stressful. Because only where it is stressful is there life.
Sigmar Gabriel (2009)
This was Sigmar Gabriel’s insight at the SPD party conference in 2009. Today, the former SPD chairman and vice-chancellor turns 65.
More headlines
The news in video
Short news on ZDF – always up to date12.09.2024 | 1:56 minIf you would like to subscribe to our ZDFheute Update, you can here do or in your ZDFheute-App under My News / Settings / ZDFheute update subscription.
This is what the weather will be like today
This Thursday, the clouds south of the Danube will remain mostly dense and it will rain longer, especially on the edge of the Alps. Otherwise, there will be showers and thunderstorms in a mix of sun and clouds. It will remain dry east of the Elbe. The temperature will rise to between nine and 17 degrees.
Source: ZDF
Compiled by Nicola Frowein
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HICP Eurostat
Inflation in the Eurozone: A Delicate Balance
The European Central Bank (ECB) has been keeping a close eye on inflation rates in the eurozone, and recent figures indicate a slight decrease in inflation. According to a report by the Associated Press, inflation in the 20-nation eurozone crept lower to 2.5% in June, but remained stuck above the level favored by the European Central Bank [[1]]. This is a crucial development, as the ECB aims to keep prices stable by maintaining an inflation rate of 2% over the medium term [[2]].
The latest figures from the ECB show that the Harmonised Index of Consumer Prices (HICP) inflation rate in the euro area decreased to 2.2% in August 2024, compared to 2.6% in July 2024 [[3]]. This downward trend is encouraging, but the ECB remains cautious, as inflation rates can be volatile and influenced by various factors.
One such factor is the recent increase in olive oil prices, which have risen by a whopping 35% within a year due to poor harvests in southern Europe. This anomaly in the price statistics highlights the complexities of inflation rates and the need for careful analysis.
The ECB’s decision on the deposit rate, expected to be made by the ECB Council, will have a significant impact on the economy. A decrease in interest rates could stimulate economic growth, making it easier for individuals and businesses to take out loans. However, this could also lead to higher prices and potentially reignite inflation.
The delicate balance between stimulating economic growth and controlling inflation is a challenge that monetary policymakers face. The ECB’s decision will be closely watched, as it will have far-reaching consequences for the eurozone economy.
the recent decrease in inflation rates in the eurozone is a positive development, but the ECB remains vigilant, recognizing the need to maintain a delicate balance between economic growth and price stability. As the ECB Council makes its decision on the deposit rate, the world will be watching closely, eager to see how this will impact the economy and inflation rates in the months to come.
References:
<a href="https://www.ecb.europa.eu/stats/macroeconomicandsectoral/hicp/html/index.en.html”>[2]
