2023-06-16 15:39:07
Inflation is making itself felt in many wallets
Image: dpa
Bundesbank President Nagel expects 6 percent inflation in Germany this year. Who this affects as an employee and how also depends on the power in the labor market.
Dhe Bundesbank has revised its forecasts for Germany’s future development. In particular, the high wage settlements of the past few months have evidently necessitated changes in the forecasts. What is particularly striking is that the forecasts for core inflation, i.e. inflation without strongly fluctuating prices such as those for energy and food, have been revised upwards significantly. This is a worrying sign: this core rate is the one most closely monitored by experts because it often tells more about the longer-term path of inflation than the headline inflation rate.
The Bundesbank is now anticipating core inflation of 5 percent for this year, which is almost one percentage point more than in the previous forecast. For the next year, the forecast has been increased from 2.9 to 3.1 percent and for 2025 from 2.6 to 2.8 percent. This is mainly due to the high wage agreements. The overall inflation rate, on the other hand, is estimated by the Bundesbank at 6 percent for this year, at 3.1 percent for next year and at 2.7 percent for 2025. This is slightly less than in the previous projection: The reason is primarily an unexpectedly sharp drop in energy prices, while less is happening with food.
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