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Germans have gloomy expectations for economy – study – RT Business News


Country’s inflation rate will continue to rise in 2023, survey finds

Most Germans do not expect consumer price growth to slow next year, according to a survey released Monday by analyst firm YouGov. Inflation in Europe’s biggest economy hit double digits for the first time in 70 years this fall.

Half of the 2,057 respondents believe inflation is likely to continue to rise in 2023. Just under a third (28%) expect price growth to remain at the high level of recent months. Only 13% of respondents expect inflation to fall in 2023. The poll was conducted on behalf of the National Association of German Cooperative Banks.

Looking ahead to the next three years, the majority of respondents expect inflation to continue to rise or at least to remain at the same high level. Only 28% anticipate a drop in rates, while 12% refuse to comment on the issue.

The survey results show “that the rate of inflation is already threatening to become entrenched in people’s minds – with a corresponding impact on their behavior”, according to Jurgen Wache, spokesman for the board of directors of the Hannoversche Volksbank, quoted by the DPA news agency.

Consumer prices in Germany jumped 10% in November in annual terms, according to the Federal Statistical Office. In monthly terms, the inflation rate fell slightly from the 10.4% level recorded in October.

Soaring food and energy prices are behind pushing inflation in Germany this year to its highest level since the early 1950s. The Bundesbank has warned that even a forecast plateau gas and electricity prices may not be enough to bring inflation down to double digits.

Price growth is likely to remain high for another two years as companies pass on rising input costs and in some cases inflate them even further, the head of the economists council that advises the German government reportedly said over the weekend. .

“Inflation will also be an issue in 2024, and only after that we may see it return to 2%,” Monika Schnitzer was quoted by the Rheinische Post newspaper.

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