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German inflation to remain high for two years – adviser

BERLIN (Reuters) – Inflation is likely to remain high for the next two years as companies pass on higher input costs and in some cases overstate them, the head of a committee of economists advising the German government said. Saturday.

Russia’s invasion of Ukraine further exacerbated already rising food and energy costs, pushing German inflation to its fastest pace since early2024, consumption In November, the price rose by about 11.3%.

The Bundesbank warned that even planned gas and electricity price caps may not be enough to trigger a double-digit drop in inflation.

“Inflation is also going to be an issue in the 2024 and only after that we’re likely to see it go back to 2%,” head Monica Schnitzer (Monika Schnitzer) The Rheinische Post newspaper quotes so-called “wise men”. s – somewhat exaggerated. “

She said she was not concerned about a wage price spiral, given rising wages in the chemical and metals industries.

Workers in these industries, agreeing may prove low

However, she expressed concern about high electricity prices, saying that the government should urgently check to keep the remaining three nuclear power plants operating two or three more times than planned. year.

“It makes sense to quickly order new fuel rods now, which will give us more security next winter,” she said. said.

Europe’s largest economy had planned to phase out nuclear power by the end of the year, but the government decided in October to extend the life of the remaining three nuclear power plants to 4 Some members of government would like to see their lifespans extended further.



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