Germans Warned of More Inflation

The German Council of Economic Experts (GCEE) has warned that inflation in the country could remain high for longer than expected, or even accelerate if monetary policy measures are offset by risks in financial markets.

According a report from the five-member council, high inflation will continue to inhibit the German economy this year. The GCEE expects an average inflation rate of 6.6% in 2023, and noted that while inflation peaked in autumn 2022, it is still significantly elevated and is likely to decline very slowly, RT reported.

“Inflation is increasingly more broad-based,” council member Martin Werding wrote on Wednesday. “Higher producer prices and expected wage increases are likely to keep up consumer price inflation well into the next year.”

The inflation rate in Germany is forecast to drop noticeably only in 2024, to 3.0%.