The German central bank warns against 6% inflation in November

2021-11-22 18:05

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2021-11-22 18:05

The German central bank warns against 6% inflation in November
The German central bank warns against 6% inflation in November
photo: cactii / / Shutterstock

The German central bank, the Bundesbank, expects the consumer price index in Germany to rise from 4.6 percent to around 6 percent soon. According to experts, inflation should start falling next year, writes the Welt daily.

In October, the Harmonized Index of Consumer Prices (HICP), which the European Central Bank (ECB) uses for its monetary policy, rose to 4.6 percent in Germany. In November, the index “could even approach 6 percent,” the central bank wrote in its monthly report published on Monday.

The Bundesbank attributes part of this increase to exceptional factors such as a temporary reduction in VAT in Germany from summer 2020 amid the coronavirus crisis. From the beginning of this year, the old tax rates will apply again – reminds “Welt”.

The special effect of VAT will no longer apply from January 2022. “Then the inflation rate should drop significantly, although the strong increase in market prices of natural gas will probably be transferred to consumers for the most part only after the turn of the year,” wrote the central bank. Experts expect inflation to decline gradually in the coming months. “But it could stay well above 3% for a while.”

From Berlin, Berenika Lemańczyk

Source:PAP
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About Eric Wilson

The variety offered by video games never ceases to amaze him. He loves OutRun's drifting as well as the contemplative walks of Dear Esther. Immersing himself in other worlds is an incomparable feeling for him: he understood it by playing for the first time in Shenmue.

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