German Finance Minister Christian Lindner expects it to decline Inflation in the country with the largest economy in Europe this year to 7%, and to continue to decline in 2024 and beyond, but he expressed his belief that high energy prices will become the new reality.
“The inflation target remains at 2%. This should be the top priority of the European Central Bank and the German government,” Lindner said in an interview with Bild newspaper published on Sunday.
And after inflation rose in Germany on an annual basis due to the rise in energy prices after the Russian invasion of Ukraine and the reduction of Russian energy exports, it eased slightly in November to 11.3% from 11.6% in the previous month.
It is noteworthy that Germany’s producer price index fell in November for the second month in a row, which reinforces signs that high inflation in Europe’s largest economy may diminish with the decline in the cost of natural gas and electricity.
The Federal Statistical Office said that industrial producer prices rose 28.2% compared to the same month last year, compared to an increase of 34.5% year-on-year in October. Analysts had expected November to increase by 30.6%.