German Inflation Rises But Few Signs of Energy-Shock Spillover

Germany's inflation rate has ticked up this month, albeit less than anticipated, indicating resilience amid rising energy costs from the Middle East conflict. While energy prices are climbing, there's a notable absence of widespread price increases across the economy, suggesting that the energy market disruptions haven't significantly impacted consumer prices yet. This stability is crucial as it implies that the German economy remains robust enough to withstand these external shocks, but it also raises questions about how long this can continue if energy prices stay high.