26 December 2022 | Other

Inflation to stay high for two years

On Saturday, the head of the German government's council of economists said inflation could persist for the next two years. This is due to the fact that companies are moving towards a higher level of production costs, and even often exceeding it. 

According to the Rheinische Post’s article, Council head Monika Schnitzer warned of further inflationary pressures in 2024. Schnitzer also explained that a return to the 2% level will only be possible after that timeframe.

According to the chief economic expert, inflation may linger for a long time, as experts observe the effect of the second circle. In this economic phenomenon, companies tend to shift their higher costs to consumers.

At the same time, Schnitzer does not consider wage and price increases a threat, given the moderate increase in earnings in the chemical and metal industries. She is concerned, however, about high electricity prices. The head said that the government should urgently examine whether it makes sense to extend the operation of the three remaining nuclear power plants for two or three years longer than planned.

Company MarketCheese
Period: 23.09.2025 Expectation: 3000 pips
Buying Bitcoin with $118,800 target amid consolidation
Today at 10:53 AM 85
Period: 22.09.2025 Expectation: 300 pips
AUDUSD rises to new highs within ascending channel
Today at 09:16 AM 88
Period: 23.09.2025 Expectation: 5070 pips
Selling Tesla shares amid fundamental headwinds
Today at 07:44 AM 87
Period: 30.11.2025 Expectation: 370 pips
Buying GBPUSD with 1.39880 in view
Today at 07:27 AM 28
Period: 30.11.2025 Expectation: 3700 pips
Buying Bitcoin on positive market sentiment
Today at 05:27 AM 118
Gold sell
Period: 22.09.2025 Expectation: 14000 pips
Gold is looming correction after powerful rally
Yesterday at 09:43 AM 317
Go to forecasts