President of the banking association expects higher inflation

by time news

BAnkenverband President Christian Sewing does not expect inflation to fall back to the low level of the years before the corona pandemic. “With the inflation trend we are currently experiencing a ‘change of floor’, ie from inflation rates below two percent in the past decade to rates of probably 2.5 to three percent in the next few years,” Sewing told the newspapers of the Funke media group.

It is true that the currently very high rate of inflation will fall slightly again in the coming year due to statistical effects alone. But there are several factors that will drive prices up in the longer term. “Including the demographically induced shortage of skilled workers or the restructuring of the economy in the direction of sustainability. Added to this is the readjustment of global supply chains. In addition, more mobile working could drive salaries up in some places, because medium-sized companies in the German provinces suddenly have to compete with jobs at large companies in the metropolises, ”said the President of the Association of German Banks, in which the private financial institutions are organized.

Sewing, who is also CEO of Deutsche Bank, expects economic growth of around four percent for the coming year. “Even if the start will be difficult, the economic burdens caused by the pandemic should ease again in the spring.” The current delivery bottlenecks should also ease over the course of the year. “The high order backlog in the industry will then provide the basis for a very dynamic recovery in the summer and autumn of next year.”

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