Mainly due to the rise in energy prices, inflation rates in the euro area have climbed to unprecedented levels. Additionally, underlying price pressures have also strengthened considerably. In the euro area, the inflation rate stood at 7.5% in April. In Germany, the rate as measured by the Harmonised Index of Consumer Prices even amounted to 7.8%.
But since 2001, exports in all of these sectors (including consumer goods) have been growing more dynamically in Germany than in France. If the traditional analysis explains very little in terms of the differences in export performance, what else accounts for these differences? Are the worried voices right after all? No, they are not.