The federal government expects consumer prices to rise significantly more slowly in the coming year.

It is true that the inflation rate will be 3.0 percent this year, as high as it has been since 1993, as the federal government's autumn projection published on Wednesday shows.

In 2022, however, it is expected to decrease to 2.2 percent and even to 1.7 percent in 2023.

For comparison: in the year 2020, which was marked by the corona crisis, the rate of price increase was only 0.5 percent.

"The delivery bottlenecks and the recent sharp rise in energy prices have led to an increase in the inflation rate," said the Ministry of Economic Affairs, referring to the current development. It assumes that the inflation rate will "reach a significantly lower level" again by the turn of the year 2021/22. The reason for this is that special factors are then omitted. This includes that the prices in the new year will no longer be compared with those of the second half of 2020, when many goods and services were cheaper due to the temporarily reduced VAT.

At 4.1 percent, the inflation rate is currently at its highest level since 1993. Many economists assume that it will initially move further towards five percent.

For October, for example, a value of 4.4 percent is expected.

The Federal Statistical Office published a first estimate this Thursday.

Upswing in the coming year

The government does not expect the economy to pick up again until next year.

The growth expectations for 2021 have been lowered.

After the corona-related collapse in gross domestic product in 2020, the government expects gross domestic product to increase by 2.6 percent this year - in April an increase of 3.5 percent was predicted.

For 2022, the federal government is now expecting growth of 4.1 percent instead of the previous 3.6 percent.

The acting Minister of Economic Affairs Peter Altmaier (CDU) said on Wednesday in Berlin that Germany was back on the growth path after the Corona crisis.

This year, however, in view of the current delivery bottlenecks and high energy prices worldwide, the hoped-for “final spurt” will not come.

In the coming year, the economy will pick up speed significantly.

The economic catch-up is slowed mainly by delivery bottlenecks.

Altmaier spoke of a historically unique shortage of intermediate goods.

The demand for German products on the world markets remains high: "If the delivery bottlenecks gradually resolve, there will be a clear catch-up effect in 2022."

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