Germany and France's inflation is falling rapidly. Premature to call deflation, as both nations have billions of Euros attached to their energy price caps. Thus creating an illusion that inflation has been tamed.


Chart of German and French inflation, with below panes showing both their PMIs (German construction/French Services).   Callout notes show when the Price Controls on energy were introduced, including the Russian oil cap   The strongest economy in Europe, Germany, is slowing down rapidly while prices remain elevated.

Refer to an explainer by the Federal Reserve Bank of St Louis re price controls on inflation and its economic impact:  stlouisfed.org/en/publications/regional-economist/2022/mar/why-price-controls-should-stay-history-books

Comments