prices are making food staples on affordable in africa. i'm chelsea delaney. we're going to show germany says it's agreed to long term gas partnership with guitar. that was still working out. the details call me mr. robert hi. back visited the golf nation over the weekend. as part of berlin's efforts replaced russian fossil fuels guitar is the 3rd largest export of natural gas and russia. and the united states, most of it is exported as ellen. gee, that's liquefied natural gas. cool to minus $162.00 degrees celsius, turning it into a liquid and making it possible to transport on ships could tar, has the 3rd largest natural gas reserves on the planet after russia and iran right now, more than 70 percent of its exports go to asia, but tiny guitar has big ambitions at once to boost production by 50 percent in the next 5 years. now some see red flags and

a deal to tar has received widespread condemnation for its systematic exploitation of migrant workers. some of them died while building basketball stadiums for this year's world cup. now stephen, parents lee, my colleague, charity w, fitness trends me now in the studio to discuss some of these implications. so stephen, this is being really pegged as a way to get ration energy out of the next look at our be able to step in and fill that gap. yeah, it's not going to do it alone. right. i mean, we think about how much of germany's gas comes from russia. we've, it's 55 percent of all gas uses, coming from russia alone, via pipeline we're, we're talking about as l n g that has to be transported by ships. and it's best if there are specific terminals in your country until then the energy is going to have to come into the you network and it was hard to get into germany. so it's complex and it's a long way of saying that, no, this isn't going to be a solution, but the same time germany knows that it has to find a solution. the biggest threat,

the best concern is that russia turns off the gas immediately on its own. but then in the long term, of course, there has to be something that, that gets to that point where you can, you can have the same kind of gas as you go over to renewables. so you're talking about long term contracts there. this implies that this is going to be a multi year relationship. how does that sort of align with germany? is climate goals which don't include having natural gas, other fossil fuels in the next? the do include having natural gas with certain point. the idea is that by 2045, germany is going to be climate neutral. and what that means is that by 2035, they want all of their electricity to come from renewables. and then they want to have gas in a reserve capacity that is on days when it's not windy or the sun is shining, or then they have something they can fire up in the long term. they want hydrogen to actually replace gas. and so they probably want that before 2045. so if you're talking about a long term contract, for example of 25 years, which is typical,

then that's going to go beyond 2045. and so the question is going to be in what quantity are they going to get this gas and for how long and doesn't match their goals? but this is an extraordinary situation for the government and they're going to take gas where they can get it. so we want to see the, so how does a tires, human rights record play into this steel? right. so robert, how about the economy minister who did this trip? he actually released a rather i found forthright video, you know, release through his ministry in which he talked about that. and he said, you know, i thought that they might throw me out the room when i brought this up. is this a sensitive topic? he said that they were prepared for it and you know, if you look at it, some things have gotten better, you know, there's a minimum wage now the working conditions had improved, but it's still an issue. and basically he saying, you know, i know this is going to be a concern when i come back home. but at the same time i'm talking about it, we're working on it. and of course, in the background is the fact that there is a war lead by russia that, that is your main supplier of gas right now. so when you start making these comparisons, you see that it's really hard to choose. sometimes are not hard to choose just there aren't a lot of perfect options, right?

given beardsley, thank you so much for joining me in a studio now, even before the war, inflation was rising at the fastest rate and decades for many countries. that's also been the case here in germany. new data out monday showed producer prices searched by a record 26 percent and february. energy cost have exploded since the data was gathered last month, setting the stage for even higher inflation going forward or worse. stagflation. after russia invaded ukraine, the price of oil and gas shut up to level is not seen in years. and that's been driving up costs for businesses and consumers worldwide. like in transport, fuel is a major expense for freight companies. if they have to pay significantly more to fill their tanks, then they have to pass the costs onto their customers. this german logistics company says this will raise prices across the board. the think that's true for

everything, from yogurt to cars and an economy based on the division of labor. everything we can imagine has to be transported ultimately and consumers bear the additional costs that arise can cost the divers interested. and those consumers are already seeing high prices at the fuel pump. there are so high that some governments are now looking to cut taxes on fuel or provide other forms of relief. and it's not just gasoline and diesel that have become extremely expensive. food prices are also rising sharply. wheat in particular, it now costs up to 50 percent more than before the war began. and that also makes staple foods like bread less affordable. the european central bank is predicting prices in the euro zone will go up by 5 point one percent this year. it's revised it's forecast upwards. this comes with economic growth weakening, especially in europe. a forecast by economic analysts predicts

a drop in economic output of 3.2 percent for the e u, compared to a scenario without war. other regions are not as badly affected, but even so overall global g d p is set to drop by 1 point one percent declining growth combined with rising prices. that's what economists call stagflation. some predict the worst global economic slump in decades, like the oil embargo, in 1973, which nearly paralyzed the world economy and lead countries to scramble to diversify their energy supplies. now for more on this, let's bring in clemons voiced from the eco institute. and you next clemons that we've seen, you know stagflation really come up as the eternal boogeyman with talked about all the time as, as one of the worst things that can happen to economy. why is that such a big fear? it's a big fear because there isn't much governments can do about tech place in

a normal economic crisis. demand declines, inflation is low, so the government can cut taxes and stabilize demand. all the central banks can print more money and stabilize demand, but with the tax lation, it's very difficult. inflation is high, so the central banks can't do much. they rather need to tighten, but that makes the price is was so it really means living standards are going down . are we seeing that right now in europe? i think so. yes, we are seeing it in europe. in the us, we have inflation, which is more of the boot type, so strong demand driving a prices in europe. we have inflation of the stack, lation airy of the bad type. we don't have a strong demand, boom. we have stable demand, but then energy prices, the prices are rising, and that's clearly effect place marie shock. so this morning we thought new data

out on german, producer prices up a record 26 percent. inflation for consumers so far is running quite a bit below that, about 5 percent is, is this inflation about to get much harder for consumers? it is yes, energy price arriving full price arriving. so the consumers see their real incomes going down. and it's not that domestic companies can compensate for this by paying higher wages because domestic companies on producing oil and they are producing much food either. so consumers will definitely and employees will take a hit in their real incomes. so some of the price increases we've seen for things like natural gas or wheat as a result of the war. and ukraine are pretty staggering. really, i popping figures. do you see a risk of inflation becoming out of control?

when i wouldn't say it's becoming out of control, it's simply driven by price in key creases and there isn't much that i can do about it at the same time. we see, for instance, the oil price at the moment of lead sterilizing for it's not the where it's going, but it will really depend on the oil price. it would be out of control if wages were now massively increasing and we would get into a wage inflation spire about that doesn't seem to be happening. so i wouldn't say completely out of control. come in 1st from the info institute immune act. thank you so much. thank you. now ukraine and russia have been called europe's bread basket due to their role as major suppliers of grain. the war has cut off the supplies and sent prices for the staples surging. our next report takes us to nairobi, where bread costs have doubled a price, few can afford sha party. john will ciocca,

makes this. we pita bread every morning in the nairobi slum of con, gamey. it's a typical breakfast here, but the bakery was recently forced to double its prices. value. um, it will go out. that's why our customers are disappearing. dumble, fail isn't us as bad as it mandates. we're not earning enough money. when his boss runs the bakery with 4 employees, prices for flower and sunflower oil, we're already going up. but now he says it's much worse due to russia's war against ukraine. international prices for wheat flour have jumped dramatically enough. what did you learn? what did you were paying attention to the war? because we need to know what's going on. that would be that some of the products we use come from both countries and, and everyone, the whole world is concerned. now you hope and it's likely the poor is that will be

hardest hit kenny's poor already have to spend half of their already low income on food. here around a 3rd of imported wheat comes from russia or ukraine. and people are award that has global supply, shrink prices will continue to rise. and that will make putting food on the table much harder in many developing countries you food price goes up, then that kind of going to be string flesh on. and then of course, ultimately you expect that there's gonna be some effect on the general ignore economic activities because people are trying to cut back or you don't have enough . but guessing power complicating matters here is a drought that is causing many to go hungry. millions already depend on assistance . if food starts to get scarce, it becomes too expensive. it could lead to a catastrophe throughout the region. 276000000 people in the world who ought in hunger crisis as we speak. and this is before the cut on crisis before

the war and you current yes. anything to help making sure that food commodities, essentially basic food commodities, reach millions of people around the world and it can't be too expensive. in nairobi . the price of wheaton oil has eaten into the bakery profit margin. if prices keep rising, it could soon put them out of business. thanks for watching. ah, ah! with

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starts april 16th on d, w. ah ah ah. this is either way, news line from berlin, a massive explosion. rocks keep a shopping mall is flattened by russian bombs. emergency crews are still searching the rubble for survivors and the besieged port. city of mario ball rejects areas russian ultimatum to surrender. also, coming up germany's vice chancellor travels to the gulf in search of new energy sources as berlin scrambles to divert.