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Money: majority expects increasing inflation

landlords react to inflation: The increase in apartment rents accelerates

 landlords react to inflation: The increase in apartment rents accelerates The rental prices for apartments in Germany increase again, the institute of German economy has calculated. This can be felt most strongly in Mecklenburg-Western Pomerania. © Photo: dpa/Monika Skolimowska The increase in apartment rents in Germany has accelerated with relatively moderate growth again after a phase (symbol image). The increase in apartment rents in Germany has accelerated again after a phase with relatively moderate growth.

in 2023. According to a survey, the majority in Germany do not believe in relaxation in consumer prices in the new year.

Volkswirte rechnen für das neue Jahr mit allmählich sinkenden Teuerungsraten. Die Mehrheit der Verbraucherinnen und Verbraucher sieht das anders. © Jan Woitas/dpa Economists expect the new year with gradually falling inflation rates. The majority of consumers see it differently.

on the contrary: Half (50 percent) of the adults surveyed in 2057 by the YouGov opinion research institute believes that inflation will continue to increase in 2023. Almost a third (28 percent) expect inflation rates at the high level of the past few months. In November, consumer prices in Germany were 10 percent above the level of the previous year's month according to calculations by the Federal Statistical Office.

Fed lifts Leit zins again to

 Fed lifts Leit zins again to The US Federal Reserve has raised its key interest rate by 0.5 percentage points in the fight against inflation. The Federal Reserve (FED) has thus initiated a somewhat more moderate course - but at the same time signaled further interest rate increases. © Pablo Martinez Monsivais/AP/dpa The headquarters of the US Federal Reserve (Fed) in Washington. of the key interest rate is now at a range of 4.25 to 4.50 percent.

Bundesbank forecasts the inflation of inflation

for months. High energy and food prices - fueled by the Russian attack war in Ukraine - predict the general inflation. This reduces the purchasing power of consumers and burdened companies. According to economists, inflation should gradually leave the record level in 2023 and decrease again - also because then the state gas and electricity price brakes take effect. For 2023, for example, the Bundesbank predicts a decline in inflation of an average of 8.6 percent in 2022 to 7.2 percent - measured by the harmonized consumer price index (HVPI), which is decisive for monetary policy in the euro area.

In the YouGov survey, however, only a minority shares this assessment: 13 percent of the respondents in the survey carried out on behalf of the Volks- und Raiffeisenbanken in the cooperative association, less inflation expect less inflation in 2023. The cooperative association, based in Neu-Isenburg, represents institutes in all federal states with the exception of Bavaria and Baden-Württemberg.

Steve Barclay to meet unions amid nurses' strikes

  Steve Barclay to meet unions amid nurses' strikes Health Secretary Steve Barclay is expected to meet with members of Unite, Unison and GMB unions tomorrow amid further walkouts by nurses and ambulance workers. © PA Nurses will strike again on Tuesday, while ambulance workers will walkout on Wednesday It is understood that Mr Barclay wants assurances from union officials that Category 2 incidents - such as strokes or cases of serious chest pain - will be attended to during industrial action.Sources say the health secretary will not discuss increasing wages during the fresh talks.

majority expects increasing or constant inflation

from Jürgen Wache, board spokesman for Hannoversche Volksbank, the survey results show "that the rate of inflation is already threatening to solidify in people's minds - with the appropriate effects on their behavior". Even with a view to the next three years, the majority of respondents expect a further increasing (35 percent) or consistently high (24 percent) inflation. 28 percent in this medium -term scenario assume that the inflation rates will decrease, 12 percent did not provide any information.

The European Central Bank (ECB) tries to get inflation under control with a series of interest rate increases. Four times in a row, the euro currency keepers raised the key interest rates in the euro area in the second half of 2022. The key interest rate, to which banks can borrow fresh money from the central bank, is now 2.5 percent and thus up to date since December 2008. Higher interest rates make loans more expensive, which brakes demand and can counteract high inflation rates. Increasing interest rates can also dampen economic development in the currency area.

An end to the interest rate increases is not in sight, as ECB President Christine Lagarde emphasized after the recent interest rate decision on December 15: «We do not let in. We have to go a longer route. » Because even the euro currency keepers adapt to the fact that inflation will not be returned to the 2.0 percent mark until 2025, in which the ECB is aiming for price stability in the common currency area.

Every fifth (22 percent) indicated in the YouGov survey that he currently has less money due to the high price bullet than before. According to their own statements, 17 percent save more than before, half of the survey participants (50 percent) have remained unchanged.

Tens of thousands of families could be hit by an effective tax rate of up to 96 per cent next year .
Analysis by Resolution Foundation warns a growing number of families will find their pay packets hit due to a clash between the income levels at which of the welfare systems are withdrawn. The two systems for withdrawing child benefit and Universal Credit were originally drawn up to support distinct parts of the population. But the decade-long cash freeze in the £50,000 threshold, the figure at which child benefit begins to be halted, means around 50,000 families will see their support withdrawn at the same time Universal Credit is also stopped.

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