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Classics: Bundesbank boss Nagel About the inflation high point

Inflation: The purchasing power of households should drop by 0.5 % in 2022, according to INSEE

 Inflation: The purchasing power of households should drop by 0.5 % in 2022, according to INSEE © LP / Arnaud Journois The measures put in place by the Government this summer have amortized the fall of the power of Purchase, while growth is expected to be 2.6 % in 2022. LP/Arnaud Journois The billions of euros unlocked by the government are paying off.

Despite the first relaxation signals, inflation in the euro area has not yet exceeded its climax, according to the Bundesbank President Joachim Nagel.

Joachim Nagel, Präsident der Deutschen Bundesbank, glaubt nicht daran, dass der Inflationshöhepunkt schon überschritten ist. © Britta Pedersen/DPA central picture Pool/dpa Joachim Nagel, President of the Deutsche Bundesbank, does not believe that the highlight of the inflation has already been exceeded.

"I would like to believe that hopefully we will see better number of inflation," said Nagel on Monday evening in Frankfurt. However, resilient data rather speak for the fact that the inflation rate will move on a high plateau for a while before it could go down more clearly.

The oil prices had recently decreased, at the same time the price lift at the manufacturer's level in October in Germany had a significantly weakened and hopes for a decline in high inflation. According to

after "Sell Everything Day": Dax with a minus start on Frankfurt Stock Exchange

 after The shock after the US inflation data from the previous day also has the DAX under control on Wednesday. © provided by Peter Bischoff/Getty Images with the DAX we went to the Handelseröffnunbg on Wednesday by 0.44 percent 13,131.34 points south. the day before, the German leading index was still at 13,564 points to its 100-day line before the high US inflation caught the investors cold.

Nagel, the inflation rate in Germany is likely to remain high in the coming year. "I think it is likely that a seven average will be before the comma," said the Bundesbank President. In the euro area, too, the high inflation loads the economy. «The massive price bullet is broad. He in particular brakes private consumption. »

In December, the European Central Bank (ECB) will add another interest rate to bring the inflation rate back to 2 percent in the medium term, said Nagel, who, as the Bundesbank President in the ECB Council, also decides on monetary policy in the common currency area. The size of the interest step will depend on how the data and the outlook developed. The central bank will present its current economic and inflation forecasts at the next interest session on December 15.

monetary policy: Bundesbank boss Nagel: "The interest must continue to rise-and clearly"

 monetary policy: Bundesbank boss Nagel: © provided by Handelsblatt "We will prevent this high inflation." Photo: dpadata portal-copyright = The president The Bundesbank calls for a more persistent approach to the currently high inflation. He also supports a balance sheet reduction at the Euro Center. The ECB must continue to raise the interest from the perspective of Bundesbank President Joachim Nagel in the fight against record inflation. "If there are ten percent inflation, but only 1.25 percent interest, then the need for action i

In addition to other interest steps, the Bundesbank President also includes dismantling the ECB balance sheet bloated by billions of bonds. "For me, there is a lot to say for starting at the beginning of next year not to completely replace leakage bonds as part of the app," said Nagel. That would also be another important signal of the ECB council to combat inflation.

Extremely high inflation

Europe currency authorities had stopped buying new securities as part of the general purchase program app on July 1, 2022. Gelder from papers, the term of which ends, have so far been fully newly created. A total of around 3.4 trillion euros in government bonds and corporate papers was available as part of the program that has been used since March 2015 by the end of October. The central bank will decide on the principles of returning its bond purchase program app in December, ECB President Christine Lagarde said at the end of October.

The ECB strives for the euro area in the medium term price stability with two percent inflation. In October, consumer prices in the currency area of ​​the 19 countries were 10.6 percent above the level of the previous year. Since July, the central bank has been with strong interest rate increases against the extremely high inflation. The key interest rate in the euro area, which was frozen at the record low of zero percent for years, is now 2.0 percent.

Fed before another interest rate increase - slower pace awaits .
The US Federal Reserve Fed is in the fight against the high inflation before the seventh significant increase in the key interest rate this year. The decision on the further course of the Federal Reserve's monetary policy (FED) is announced today. A bereaved increase of 0.5 percentage points is expected to a range of 4.25 to 4.5 percent. This would make the Fed a somewhat more moderate course than in the past few months.

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