Inflation in Germany could remain in double digits next year, despite the government’s efforts to curb energy prices, the country’s central bank said on Wednesday (23).
After consumer prices in Germany rose 11.6% last month, the strongest pace since the early 1950s, Berlin is trying to limit the rise in energy bills that reflects an explosion in the market price of natural gas after the Russian invasion of Ukraine.
But the Bundesbank said the effect of this so-called “brake” on gas prices might not become immediately visible, and would be only temporary anyway.
“The inflation rate could be in double digits also beyond the turn of the year,” the German central bank said in a monthly report.
“As soon as the brakes on gas and electricity prices expire, the effect on the inflation rate will be reversed,” the Bundesbank said.
Source: CNN Brasil
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