German inflation expected to reach 7% in 2022 -DIHK

div classBodysc17zpet90 cdBBJodivpBerlin Reuters – Germany‘s 2022 inflation rate will more than double from last year’s 3.1 as already high energy and food prices are pushed up by the war in Ukraine, the countrys Chambers of Industry and Commerce DIHK said on Tuesday. p

pDIHK said it now expects the inflation rate to hit 7, after initially forecasting a rise of 3.5 in its February forecast.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pGermanys economy ministry said in April it saw an inflation rate of 6.1 in 2022 and 2.8 next year, citing the effects of energy prices in Europes biggest economy. p

pNearly 40 of the roughly 25,000 companies surveyed plan to pass on the higher costs on to customers, said DIHK. In particular, more than every second company in industry and trade said it was intending to pass on the cost increases. p

pOverall, the DIHK expects economic growth of 1.5 in 2022. One of the key drivers is set to be private consumption, which is expected to grow 3 this year from 0.1 in 2021, while government expenditures are likely to stagnate this year. p

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pp Reporting by Christian Kramer Writing by Miranda Murray Editing by Madeline Chambersp

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