• 90% of gas price difference in sourcing from alternatives will be passed on to consumers
• We cannot stop the effects of higher prices from breaking through
• Uniper rescue is important because no company would not have been affected
• It is remarkable that Russia is not keeping to commitment on gas deliveries

Well, if you poke the bear, you best be ready for when it bites back. In any case, the headline remark just means more pain coming to consumers in having to already deal with rising costs on a daily basis.

This article was written by Justin Low at www.forexlive.com.

The Bundesbank is out with its monthly report, noting that the economy is likely to have grown less than anticipated in Q3 and may face a new inflation spike come September as government subsidies expire. Adding that the energy crisis is marring the outlook and makes for a very distressing economic situation.

For some context, German government subsidies on fuel and rail tickets are set to expire on 31 August.

The German central bank says that „the future development of the energy market is very uncertain, especially with regard to natural gas deliveries from Russia“ and that „the risks for the price outlook are clearly pointing upwards“.

This article was written by Justin Low at www.forexlive.com.

• The data convinced me to start rate hike cycle with a bang
• Rate hike is the beginning of a series of similar steps to tame inflation
• It will take a while to get inflation to desired levels

So, now 25 bps is back in play for September? What is going on..

The minute forward guidance goes out the window, everything is just turning into a massive mess right now. And just a day after starting their rate hike cycle, we are already seeing fresh recession indicators from the PMI data today. It goes to show how the ECB has really dropped the ball on this one.

This article was written by Justin Low at www.forexlive.com.