Inflation in Germany: Expecting a normalisation for now
Inflation in Germany: Expecting a normalisation for now. The economic boom
and considerable wage rises agreed in the current wage negotiations will drive
core inflation up, from currently just below 1 1⁄2% towards 2%. Headline inflation
looks set to accelerate less, as the uptrend of both food and energy price is
likely to slow compared to 2017, not least due to the euro appreciation.
However, as global capacities are getting scarcer and the world is leaving its
demographic “sweet spot” behind, the disinflationary trends of the last few years
might become a thing of the past. Overall, upside risks to our inflation forecast
clearly prevail.
EU Forecast
euf:ba1.8i:124/nws-01