to enjoy the good lives or struggling to afford to suit how items you know, sky rocketing inflation has exposed a stark cloth define. this is dw business, i'm kate ferguson and thanks for joining me. germany posted no growth in the last quarter raising fear said, europe largest economy is facing a long term loss of momentum. higher energy costs driven by the horn ukraine. china's sluggish recovery and higher borrowing costs are all waiting on the country . there was some promising news though. inflation dropped slightly in july, coming in at 6.2 percent for more and that's less bringing from the grim professor of economics at fleet position alex on the university as a member of germany's cancel off economic experts. veronica 0 growth following 2 quarters of contraction. this has not signed great. what's going on? yeah, i think we are in a difficult period in germany as

a central banks have been raving key interest rates at a rapid pace basically since last year in order to find this place. and i think the down planning of economic growth is something that comes with it, but which is all of course necessary in order to get inflation down. so i think this will be the challenge to get us most lending of monetary policy. not too much of a recession, but we're in a very stagnation kind of period. okay, so inflation is down oh, bit only slightly to 6.2 percent. does that mean we can finally expect an end to these interest rates high 1st of really being hitting people with their mortgages? i'm with a car loan payments as yeah, i think b, c, b is not still much greater pressure then the federal reserve bank in the united states and the court inflation in the euro zone. if it's still high, it is, might now go down. but it seems as if the issue is not yet done.

so the c, b has not committed itself to a for, for interest rates, step in september of but it will make its decision dependent on data basically. and i think it could be expected that there was a next step in september. but why is the, is to be under so much more pressure than the fed? why are the policies working in the us? i'm not here in europe. yeah. first, you reacted much later than the february, so um the inflation is still high. so in europe there was a lot of pressure from the supply side. basically we had a huge energy crisis. energy prices went up and now they are going to step by step into car inflation and court inflation has been rising and is still high. so this is a challenge for the u. c. b, headline inflation is very heterogeneous across europe and spain, for example,

where the energy prices have risen or maybe very much in 2022 cor inflation is now down because the energy price effect is not that essential anymore. in other countries like flow, right? yeah, inflation is still at 11.3 percent, but the average um it has car inflation is still high and i think this is uh, the main issue. why the c b is not done yet. but as the most since they're, the countries are really experiencing diverging states here. why is germany struggling so much? one of the weaknesses in this economy? yeah, i think does that 2 aspects beyond monetary policy? one issue is that germany has been hip very strongly by the end of the crisis, because germany has been very dependent on russian gas and so deliberately stop and rushing gossett, especially durham, and you've heard very much. and 2nd of this is

a lot of energy intensive industry in germany, which is now of course, struggling with a high energy prices. and there was quite a lot of uncertainty. now, what will be the prospectus um, in the context of the energy intensive industry? i think one is you are the fossil fuel energy prices and the other issue is the front formation, which is much more of a challenge in these times. so the transformation towards climate neutrality is of course, something that is very important for of the industry and which is very of which puts very much things that stay at the moment. veronica graham, the professor of economics, obviously plays alex. i'm the university there. now while inflation, the euro zone, it may be easing elsewhere in the world. it is a completely different story. in argentina, inflation is forecast to his a 120 percent by the end of the year. and for those fortunate enough to have money

to spare, the rock, the lady value and courtesy is a reason to go out and enjoy life instead of watching their savings. dwindling the back for the poor rising prices mean struggling to afford to eat it's friday and on the coast of rio de la plata. this restaurant is crowded, as are many others in affluent and middle class neighborhoods. one of the restaurant owners, diego was in you, although it says that despite drummed contemplation, consumption and leisure and culture including eating out, has increased 7 percent compared to 2022. the ammonia to see why. busy no notion occurs, even the diesel is literally drowning. and it doesn't make sense to say, so don't, aren't many opportunities for investing either. that's why many people have decided to spend what they have on vacations, beautiful restaurant visits, grew up and recreation in general. and it's a bradley going to him one outside of mine and one of the customers is roberto

romano. he is spending around $40.00 for a plate of oysters and a glass of wine. i'm seeing that getting a uh price as, as a, having an effect. and all of us going to a restaurant is the only thing i can afford. i don't buy clothes. i don't buy luxury products. i don't buy anything. i mean i spend it on food. why? because it brings me joy or is it because something i allow myself to indulge in with the money roberto spends on his meal for adults will good rental room and if a villa and when osiris where he has been sleeping rough for a year last year, the number of people living on the streets of when his iris increased 34 percent because of his addiction rodolfo no longer has the documents needed to receive a subsidy for rent. and what he earns from collecting garbage isn't enough. i can't afford anything, even by a teal of meat at a butcher,

is out of my reach on 2 and a half trans costs of 2500 pieces. you'd also have to have to buy rice vegetables plus the gas you spent to go to places. how do you suppose to do that when you only earning 6000 pesos? it's crazy and i'm angry. you. mariana gonzales is an economist, that'd be unemployment agency in argentina. it has, i know like the blowing any quality in the country and i, you know, associated society has become poor as a whole. the people at the lower end of the income scale are suffering the most of the, you know, for the even the middle class has not gained anything during this time. rather the opposite. and yet we see a trend like the credit restaurants. but i'm saying some say the overcrowded restaurants are due to the so called bermonte economy, where many are in high income's through informal off the books work, and make even more money than in the formal labor market. argentines, skyrocketing installation, has also led to an astronomical rise in rents. the government has stepped in with

a lot of stop landlords, increasing costs too often. but in many cases, that policy comes back fired, leaving tenants in an even worse stage. and before apartments important aside is a highly sought after and they are extremely expensive. rental price is emergency enough capital to have exploded in recent years to protect tenants and you know, was passed at the last landlords, only $1.00 rent increase per year. but it's back fi it, many landlords have instead switch to platforms like air bmw be the most. we see the owners are focusing on template or rents because they are paid them donors, which is a strong currency. and we can understand it because they have worked their whole life both properties and not want to get a good income from them. getting to know one of them though, the landlords have been trying to compensate for the inflation offer on 100 percent and to avoid the weak origin time passed. so, and if payment is made,

why are for an account us dollars can be converted into pessimists at black markets rights award and currency controls. it's illegal but widespread. and it has led to a huge imbalance and the capitals, real estate market the a. well, no further issue, but before to know that there were as many as 8 times as many listings for rent and the product and on the market as now you see them and they'll send it to me with and that's a big change it to some of the, i mean the last few months besides being hit by inflation engineer law, a new player appeared to know what the temporary rent is going to go. yeah, but i believe last year on the left then the amount of today and off load is, is like, you know, what i do that's only added to the missouri for tenants in the metro opponents. so for an a cyrus and we to inflation only rising tanks,

don't look to get any better. tens of thousands of people have been forced to leave their homes and cut their holidays shores. as wildfires continue to rage on the greek islands of roads and courses. in a country where $1.00 and $5.00 jobs depends on the tourism industry, the economic impact of climate change is already painfully apparent. this is what's left of the dream vacation. the fire has raged heavily on the greek holiday island of rhodes. tens of thousands of people had to be evacuated from results in homes in the past few days, thousands of vacation, a square flown out for the trays. it was a really terrified and bad experience. but from us, i think it's bars because we leave here. everything is burn taco some, a triple. this is in a similar situation, his business was not spared by the flames. nevertheless, he's now trying to look forward with the business. we are. we have

a good defense. and the way i hope we're to fix it again. it's month that, but every way he and call, for example, a major area swift sped by the fios hotel owners. i now particularly worried that guests might stay away because of the pictures they see on tv. some travel agencies have already restricted the office to greece. of course they have like a, they have the dealer this for safety reasons, but the not let me do here. we don't have any problems about then just the not terrify the people. the core full is a, an emergency. it's one sides of the eye but needs help. but we have a we still have authority and we don't have any progress in the other areas. in grease $1.00 and $5.00 drops depends on tourism. but on holiday islands, like roads in call for, it's likely close to 100 percent on that rough by. so from where you can always check out to tell me, does com slash distance from me on the team is by taking the

retreat just to make sure that we're doing things that are sustainable and things such to be able to be pretty safe for generations to call it t, but it's a trend fashion from a cycle you to sax to is taking up on his passion theme in an environmentally friendly way. remax 19 minutes on d. w. evelyn charmaya, welcome to my pod cast. last. the matter is that i am by celebrities, influenza and experts to talk about all plain love data. and yet today, nothing the less, the fast, all these things in more and the new season of the fun cost. so make sure to tune

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