Inflation in Germany and the euro zone as a whole has fallen again for the first time in a long time.
Nevertheless, inflation of 10 percent is of course still far too high.
In their everyday lives, people notice that the price of many everyday necessities, from bread to ancillary costs for the apartment, has risen much more sharply than wages and salaries over the past twelve months.
That rightly causes resentment.
It is disputed whether this has already peaked inflation.
The large number of incorrect inflation forecasts over the past two years makes us a little cautious.
At the moment, the decline in inflation is mainly, if not exclusively, due to energy prices, which tend to fluctuate widely in both directions.
It is not only unclear how the price of gas will continue in the long term.
The Bundesbank had announced double-digit inflation rates for the next few months, at least for Germany.
At some point, the inflation rate will benefit from the fact that energy prices will not rise again as sharply as they have been since the pandemic.
The state price brakes will also make themselves felt at some point.
In contrast, most economists believe it will be some time before the interest rate hikes by the ECB have a noticeable impact on inflation rates.
The central bank should by no means ease up too soon in its fight against high inflation.