Germany grapples with rising inflation, despite a stagnant economy and increasing unemployment. The country faces pressure from escalating US tariffs on European products, impacting businesses and consumers alike. While the latest inflation rate exceeded expectations at 2.1%, core inflation remains unchanged at 2.7%. This indicates a broader economic struggle. Unemployment figures rose sharply, adding to the woes of the labor market. A recent trade deal with the US has imposed new tariffs on various sectors, further complicating Germany’s export situation. The impact of these tariffs is unclear, as businesses grapple with price adjustments and potential demand shifts. The ECB faces a difficult decision regarding interest rates in light of the persistent inflationary pressures and the stagnant economic outlook. Consumer confidence remains high despite inflation fears, making it challenging for the ECB to achieve its target inflation rate of 2%. With no clear path forward, Germany’s economy continues to stall, leaving uncertainty about the country’s future trajectory.