Paris - "At the moment our projection for Germany is 2.8 percent for the coming year and 2.2 percent for 2023: these are slightly higher inflation rates than we were were used to in the past years", said The chief economist of the industrial organization OECD, Laurence Boone to
Bild (Thursday edition). "The situation would be problematic if it lasted longer and workers would understandably demand higher wages in the face of rising prices," Boone said. "If companies don't become more productive at the same time, they in turn would try to offset the higher costs with higher prices. That would be a vicious circle that we don't want." CDU parliamentary group vice-president Carsten Linnemann expects an inflation rate well above the target value of the ECB for the coming year. "We will have significantly more than two percent - in the next year, three percent or more on average. That is my firm belief," he said in an interview with
Bild.
The CDU politician called inflation "a cold expropriation of the common citizen". Linnemann named persistent delivery bottlenecks, the shortage of skilled workers and the danger of a wage-price spiral, which can already be seen in the USA, as reasons for the persistently high inflation rate. Because of the high inflation, Linnemann attacked the European Central Bank (ECB): "I am tired of showing consideration for the ECB just because it is a politically independent body."
The ECB has a clear mandate: to maintain monetary stability. They must therefore take countermeasures: "If we are significantly above two percent - and we are doing that at the moment, and that is not in the short term - then they has to act."
Photo: haz.de
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