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High gas prices were carried over to most German homes with the start of the new year. Based on personal anecdotal evidence, all sorts of administrative prices and even broadcast television prices have gone up. Add to this additional price increases in the hospitality, culture and entertainment sectors once the current round of restrictions ends and it’s hard to see inflation dropping significantly anytime soon.
It will take until late summer to see inflation slow to any significant degree, when price spreads linked to the shutdown will end and the underlying effects of negative energy prices will begin.
2021 saw Germany’s worst rise in inflation since the early 1990s. Today’s inflation numbers should, in our view, represent the peak of high inflation. However, inflation is unlikely to fall in a straight line from here. Instead, inflationary pressures will first expand across sectors and commodities before subsiding at the end of the year.
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Sources 2/ https://news.google.com/__i/rss/rd/articles/CBMijwFodHRwczovL3d3dy50aGVndWFyZGlhbi5jb20vYnVzaW5lc3MvbGl2ZS8yMDIyL2phbi8wNi9tYXJrZXRzLWZlZGVyYWwtcmVzZXJ2ZS1uZXh0LWdyZWdncy1mdHNlLXNlcnZpY2Utc2VjdG9yLWNhci1zYWxlcy1pbmZsYXRpb24tYnVzaW5lc3MtbGl2ZdIBAA?oc=5 The mention sources can contact us to remove/changing this article |
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