does appear to be cool. we'll get expert analysis on both developments. also coming up, enjoying the good life, or struggling to afford food. how items you know, sky rocketing inflation has exposed a star cloth device. this is dw business, i'm kate ferguson and thanks for joining me. germany posted no growth in the last quarter, raising fierce and europe largest economy is facing a long term loss of momentum. higher energy cost driven by the horn ukraine, china, sluggish recovery and higher borrowing costs are all waiting on the country. there was some promising news, so inflation dropped slightly in july, coming in at 6.2 percent. for more in this less bringing from the kind of grim professor of economics at fleet, there's alex on the university and 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 regular pace basically since last year in order to find this place. and i think the down putting of economic growth is something that comes with it about which is will 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 all bit only slightly to 6.2 percent. does that mean we can finally expect an end to these interest rate, high flush of really being hastening people with their mortgages? i'm with a car loan payments. 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 of the c, b has not committed itself to a for, for interest read 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 be under so much more pressure than the fed? why are the policies working in the us? i'm not here in europe. yeah, 1st of the be 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 core 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 in spain, for example, where the energy prices have risen or baby 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 perspective 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 trunk 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 of sleep. so it's alex, i'm the university there. now while installation the euro zone to maybe 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 rapidly de bothering currency as a reason to go out and enjoy life instead of watching their savings dwindle in 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 all note says that despite rump contemplation, consumption in leisure and culture including eating out has increased 7 percent compared to 2022. the money. that is why the why do i have no notion of car is either feasible, there's literally drowning and it doesn't make sense to say, you don't find 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. i mean, typically i'm going to my outside of my into one of the customers is rebecca to romano. he is spending around $40.00 for a plate of posters and a glass of wine. i'm seeing that can you see a crisis isn't 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 with good rental room. and if a villa in going to cyrus, where he's 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 in the

the i kind of forward anything, even buying a teal of meat at the butcher is out of my reach 12 and a half trans costs of 2500 pieces. you'd also have to have to buy rice vegetables plus the gas who spends to go to places. how do you suppose to do that when you're only earning 6000 pesos? it's crazy and i'm angry. you. mariana gonzales is an economist at the unemployment agency in argentina. it has analyzed the glowing, any quality in the country. and i usually associate because this lady 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 an even the middle class has not gained anything during this time. rather the opposite. and yet we see a trend for like the credit restaurants. but i'm saying some say the overcrowded restaurants are due to the so called around 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 inflation has also led to an offer nominal rise in rents. the government has stepped in with a lot of stop line boards increasing costs too often. but in many cases that policy has backfired. leaving tenants in an even worse stage. and before apartments in going to side is a highly sought after, and they are extremely expensive. rental prices emergency enough capital to have exploded and recent to us to protect tenants. and you know, was passed that the most landlords only one rent increase per year. but it's back fi it, many landlords have instead switch to platforms like air b and b, they must receive the owners are focusing on template or rents because they are paid in dollars, 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. because i do 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 into capitals, real estate market the a. well, no further useful, but before to know that there were as many as 8 times as many listings for rent in the apartment and on the market as now does it to whom do i meet with them? that's a big change it to some of the i mean the last few months besides being hit by inflation. and in the last, a new player appeared to know what the temporary rent on to the do you happen to believe less younger with 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 of

point to cyrus. and we to inflation only rising things don't look to get any better . tens of thousands of people have been forced to leave their homes on color, hold a source as wildfire as continue to rage on the greek islands of rhodes, on for food in a country where one and 5 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 and homes in the past few days . thousands of vacation as well flown out for the tories. it was a really terrified and bad experience, but from us i think it's worse because we leave here. everything is burned. taco some, a triple us 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 not that bad every where he and call, for example, a major areas with sped by the fios hotel owners. i know particularly worried that guests might stay away because of the pictures they see on tv. some travel agencies have already restricted their office to grease. of course they've agreed to pay the, the villages for safety reasons, but the non funding did here. we don't have any problems about then just the not to defy the people. the core full is a 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 greece, $1.00 and $5.00 jobs depends on tourism. but on holiday islands, like roads in call for, it's likely close to 100 percent. on that rough up i show from where you can always

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spicing social norm seeking is self determined goals. escape from treasury and abuse. start august 5th on dw, the w news line from the bottom and the head of new jazz presidential, god of points himself president of the new national council. and that's the country's new leader. i know after rough bonnie gianni that the queue that the post, the elected leader is backed by the army and supports on the straits. also on the

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