© Reuters. FILE PHOTO: A general view of a fruit and vegetable stand on a weekly market in Berlin, Germany, March 14, 2020. REUTERS/Annegret Hilse
Berlin (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 country’s Chambers of Industry and Commerce (DIHK) said on Tuesday.
DIHK said it now expects the inflation rate to hit 7%, after initially forecasting a rise of 3.5% in its February forecast.
Germany’s 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 Europe’s biggest economy.
Nearly 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.
Overall, 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.
German inflation expected to reach 7% in 2022 -DIHK