Hardly. It may be less expensive than in other countries, but smoking is expensive in Germany. Hence smoking it going up is a sign that the effects of inflation and stagnating growth are limited. Not every problem is related to current economics.

The main reason for the recent development (and that was seen everywhere, not just in Germany) was the pandemic. Social isolation and drug use are connected.

Dim long-term prospects (climate change etc) might play a role, but I'd go with what the article says: Other countries implement a variety of measures to reduce smoking. Germany doesn't. Hence it doesn't go down. I mean, the stuff is addictive and profitable? Who in their right mind would assume it will go away if there's no government action?

Which region are you referring to? Alter is dead and replaced in modern German with Wallah.