Max planck institute for radio astronomy, Research institute in Bonn, Germany

Berlin, June 16 Leading German economic institutes expect inflation in the country to remain high in 2023, due to soaring energy prices, the Russia-Ukraine conflict and supply bottlenecks.The Kiel Institute for the World Economy (IfW Kiel) and the ifo Institute on Wednesday raised their 2023 inflation forecasts to 4.2 per cent and 3.3 per cent respectively, Xinhua news agency reported.Recent signals from the European Central Bank (ECB) to normalise their monetary policy came "too late and have so far been too timid," said Stefan Kooths, vice president and head of forecasting at IfW Kiel.Last week, ECB president Christine Lagarde said that high inflation was a "major challenge for all of us," with further interest rate hikes expected this summer. In the medium term, inflation rates across Europe are to be pushed back below the ECB target of no more than 2.0 per cent.German consumer prices in May were up 7.9 per cent year-on-year, the highest inflation level since the first oil crisis in the winter of 1973/1974, according to official data. Euro zone inflation was even slightly higher, at 8.1 per cent.For the full year 2022, the Munich-based ifo Institute expects inflation in Germany to reach 6.8 per cent, while IfW Kiel has predicted an even higher rate of 7.4 per cent.Although negative factors such as supply bottlenecks and high raw material prices are likely to become less significant in the second half of the year, ifo lowered its economic growth outlook for Germany in 2022 from 3.1 to 2.5 per cent.IfW Kiel showed even less optimism, forecasting that Germany's economy would only grow by 2.1 per cent in the current year.For the time being, Germany's economy is still supported by private households, with pandemic-related savings of 200 billion euros ($208 billion). The country's industry is also in good order, IfW Kiel noted.Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

Max Planck Institute For Radio AstronomyFOLLOW

Max planck institute for radio astronomy, Latest News

New Delhi, June 27 Prime Minister Narendra Modi, who is in Germany for the G7 Summit, had 'chai ... ...

Krun (Germany), June 27 UK Prime Minister Boris Johnson and his Canadian counterpart Justin Trudeau jokingly argued over ... ...

In a public demonstration held in Munster, Germany on Saturday, the Baloch National Movement (BNM) called on international communities to take notice of Pakistan's increasing atrocities on Balochistan. ...

Berlin, June 24 Germany's government has declared the second stage of the country's national gas emergency plan, after ... ...

Seoul, June 22 South Korean President Yoon Suk-yeol called on Wednesday for stronger measures against the inflow of ... ...

Berlin, June 16 Germany's Minister of Health Karl Lauterbach expressed concern about the current increase in Covid-19 infections, ... ...

Meuspath (Germany), June 16 Mercedes-AMG driver Arjun Maini will be looking to claim his second podium finish when ... ...

Berlin, June 16 Leading German economic institutes expect inflation in the country to remain high in 2023, due ... ...