Germany may already be experiencing 'beginning of stagflation'

Christian Lindner, German Finance Minister and chairman of the German Liberal Party.

Germany may already be at the start of a phase combining economic stagnation with rapidly rising consumer prices, according to a senior adviser to Finance Minister Christian Lindner.

A hoped-for pickup in growth in the second quarter after the lifting of pandemic restrictions hasn’t materialised and inflation has exceeded expectations, Lars Feld, a professor of economic policy who advises Mr Lindner, said at a news conference in Berlin.