Expert warns of inflation: Budget compromise by the traffic light coalition is driving up inflation

Expert warns of inflation: Budget compromise by the traffic light coalition is driving up inflation

According to a report by www.merkur.de Economists fear that the traffic light coalition's budget compromise will also have an impact on inflation. According to a recent study, some decisions could drive up inflation. The inflation rate in January is estimated at just under four percent. Among other things, it is expected that the CO₂ price will rise from 30 to 45 euros, which could lead to energy prices such as refueling and heating becoming more expensive. In addition, further measures such as increasing the ticket tax in air transport and imposing a plastic levy are expected, which could cause the inflation rate to rise further. A survey by the Ifo Institute also shows that more companies want to increase their prices, which could cause inflation rates to stall for the time being. However, Bundesbank President Joachim Nagel only expects the budget compromise to have limited effects on inflation in Germany. A recent forecast from the Bundesbank predicts that the inflation rate will halve in the coming year.

The above facts indicate that the traffic light coalition's budget compromise will have a significant impact on the inflation rate in Germany. The increase in the carbon price and the planned measures to impose additional taxes could lead to consumers being faced with rising energy costs, particularly in relation to refueling and heating. In addition, the Ifo Institute survey signals that companies want to increase their prices in the coming months, which could support a further increase in inflation rates.

These developments could have a significant impact on the market and the financial industry, as rising inflation rates typically lead to a reduction in consumer purchasing power and higher costs for companies. This could lead to a decline in consumption and an increased burden on companies. In addition, rising inflation rates could influence the European Central Bank's monetary policy as it strives to keep inflation at a stable level. However, the Bundesbank's forecast, which predicts the inflation rate will halve next year, suggests that the long-term impact may be limited.