Inflation in Germany rose to 8.8% in August, a nearly 50-year record that comes amid an energy crisis in the country.
August inflation beat out Germany’s previous record of 8.5% set in July, a level the country hasn’t seen since 1973. The spike comes despite measures Germany took to stem inflation last month, including cheaper public transportation and lower gas taxes, according to Reuters.
“Judging by the current inflation rate and what is still to come, the [European Central Bank] should actually launch a jumbo interest rate step,” economist Thomas Gitzel told Reuters.
Germany is the largest economy in Europe, and many countries have called for the ECB to raise interest rates to stem inflation across the continent.
Germany’s spike comes as the U.S. continues to suffer from inflation levels hovering around a 40-year-high. President Biden’s administration has faced heavy criticism for its handling of the economy, particularly from Republicans in Congress.
House Minority Leader Kevin McCarthy attacked the president last week for a speech that “vilified” Americans rather than focusing on the economy.
“What Joe Biden doesn’t understand is that the soul of America is the tens of millions so hardworking people, of loving families, of law-abiding citizens whom he vilified for simply wanting a stronger, safer and more prosperous country,” McCarthy said in a speech in Scranton, Pennsylvania.
“How many of you can afford to give up one month of your income? I bet not many. But if you had a constant salary for the past year, you’ve had more than one month of your income taken away,” he continued. “Democrats have had total control in Washington. They control the House, they control the Senate. They control the White House. They have all the levers of power. So let me ask you this. How have they done?”
U.S. inflation currently sits at 8.5%, up from 4.7% in 2021.