As a result of the recent deficits, federal debt held by the public has increased to around 60 percent of GDP – a level not seen in 60 years. For now, the budget deficit seems to have topped out.
And indeed, the war has caused a huge surge in prices, above all for energy, thereby significantly stoking price dynamics in general. But that is not the only reason for the high levels of inflation, not by a long way. Even before the outbreak of the war, price pressures had intensified considerably.