Inflation has passed its peak in Germany as energy prices ease – Econ Min
10:58 am Thursday, May 04th, 2023
BERLIN (Reuters) – Inflation has passed its peak in Germany as energy prices have eased, German Economy Minister Robert Habeck said on Thursday, adding that the downward trend is expected to continue.
Energy prices have eased from a 23% increase in January to a 19% rise in February and a 3.5% rise in March.
“That trend can continue,” Habeck said at an event organised by the Hans Boeckler Foundation, expecting energy prices will continue to drop over 2-3 years.
Yet inflation remains too high, Habeck said. Inflation stood at 6.9% last year and the government forecasts it will come down to 5.9% in 2023 and 2.7% in 2024.
“Inflation has to come down,” Habeck said. Demand should not be additionally fuelled, he added, and there should be no tax cuts.
(Reporting by Christian Kraemer; Writing by Maria Martinez; editing by Matthias Williams)
