Inflation has settled dangerously. The general rate of inflation is likely to fall in the spring. But at its core, inflation will remain far too high for a long time to come.
Because the price hike has taken on a life of its own. Because everyone expects prices to rise, manufacturers, dealers and service providers are raising prices, and unions are demanding wage and salary increases well above inflation rates.
As a result, the ECB will raise interest rates more and keep them higher for longer. Inflation is here to stay. These are the most important consequences for your money.
Inflation is proving persistent. The inflation rate in Germany had already risen again in January, and in February it was unchecked at 8.7 percent. That was barely below the high from the fall. Although energy prices are falling and despite the first stages of the gas and electricity price brake, prices are rising unabated. Politicians are swearing that the inflation wave will subside. However, recent data suggest that inflation will remain too high for a long time. “Inflation is far from defeated,” says Commerzbank chief economist Jörg Krämer. “Inflation is not falling as quickly as hoped,” says Jörg Zeuner from Union Investment.
We explain the reasons for the unexpectedly stubborn inflation, how prices are going – and what consequences this has for you and your money.