//Germany’s economy shrinks, fuelling fears of a recession – business live

Germany’s economy shrinks, fuelling fears of a recession – business live

Rolling coverage of the latest economic and financial news, as Germany suffers a 0.1% drop in GDP in April-June

Economists: Berlin should boost spendingBreaking: German GDP shrank 0.1% in April-JuneExports have fallen as trade wars biteGermany has only grown by 0.4% over the last yearUK hit by rising inflation

10.02am BST

The jump in UK inflation to 2.1% last month could spur the Bank of England to raise interest rates, despite Brexit uncertainty.

My colleague Richard Partington explains:

City economists had forecast CPI to fall to 1.9% – instead, it’s now over the Bank’s target of 2%.

The unexpected rise could pile pressure on Threadneedle Street to raise interest rates, even as economic growth falters, in a potential sign the UK could begin to mirror the stagflation of the 1970s – when growth stalled yet inflation continued to rise.

9.51am BST

A reminder of how Germany’s economy has stumbled over the last year, including this morning’s disappointing drop in GDP.

#Germany‘s GDP contracted for the second time in the last four quarters. Q2 2019 GDP growth -0.1%, YoY growth -0.4%, slowest in 6 years pic.twitter.com/ZQfRfxvFpD

Sharp decline in manufacturing production -6% YoY in JuneThe car production has nose dived to 2009 levels pic.twitter.com/J5tTGFYUQm

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Read more: theguardian.com