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Germans say inflation will increase, despite Central Bank's forecast

  • By Al Mayadeen English
  • Source: Agencies
  • 26 Dec 2022 16:01
2 Min Read

28% of poll respondents believe Germany's inflation will continue to rise.

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  • Germans say inflation will increase counter Central Bank's forecast.
    Germany's economy — the largest in Europe — is heading for a slump that could last into next year.

Contrary to the German Central Bank's prediction, half of Germans anticipate more inflation in 2023, according to a study from the DPA news agency on Monday.
 
The Bundesbank predicted that from an average of 8.6% in 2022 to 7.2% in 2023, inflation will be on the decline. However, according to a YouGov poll cited by the news agency, almost 28% of respondents believe inflation would continue to be high.
 
The poll's findings recorded that 35% of respondents anticipate that inflation will increase over the next three years, 24% predict that it will stay high, and only 28% anticipate that it would decline.
 
22% of Germans said that they were saving less money than before due to rising prices, according to the poll. The poll was conducted from December 16-19 and surveyed 2057 people.

The energy crisis will increase inflation, reduce real disposable incomes, and hinder household consumption until at least mid-2023, the Bundesbank said, even though gas shortages are not anticipated. Production will be hampered by high energy costs, particularly in sectors that use a lot of energy.

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Read next: Inflation in Germany reaches record 10% in September - Destatis

Yesterday, a report suggested that the inflation in Germany is likely to remain high until the end of 2024 as the country's companies spill their rising costs onto customers, the government's senior economic aide warned. 

"Inflation will also be an issue in 2024, and only thereafter will we maybe see it returning to 2%," Monika Schnitzer, who heads the council of economists that advises the German government said.

"Inflation is remaining high because we are seeing second-round effects, with companies passing on their higher costs - and some significantly exaggerating," she added, according to Rheinische Post newspaper.

  • Economic inflation
  • Germany
  • Central Bank
  • inflation

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