Germany: inflation should remain high in the coming years

Consumer in a Berlin supermarket (illustrative image).

AP - Kay Nietfeld

Text by: RFI Follow

1 min

Efforts to cap energy prices will do nothing.

Inflation will remain high for the next two years in Germany.

This is the message of two officials in the German press when Europe's leading economy is facing an inflation rate not seen since the 1950s. What justifies in their eyes the monetary tightening of the European Central Bank which promised to raise interest rates to fight inflation.

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Europe's largest economy will remain mired in record inflation for at least two years.

The warning comes from Monika Schnitzer, the head of the German government's economic advisers, in the

newspaper .

At issue, of course, is the insane increase in energy costs due to the war in Ukraine.

Companies will continue to pass this increase on to their customers at least until 2024. What justifies the maintenance of the increase in the key rates of the European Central Bank (ECB), replies in echo Isabel Schnabel, member of the executive board of the ECB, in the German newspaper

.

The one who belongs to the camp of the hawks of the ECB defends a prolonged tightening of the monetary policy of the European banking institution.

Last week, the Frankfurt institution stressed that price inflation at the euro zone level will remain above its

for three years.

So don't expect her to release the brake pedal anytime soon.

The decision was shouted down by Italy, but faced with these reactions, the ECB must resist political pressure, warns the member of the ECB's executive board.

►Also read: Inflation is rising again in Germany after the end of support measures

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• Energies