夏季后德国通胀或大幅下滑

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Carsten Brzeski, the head of global macroeconomics at ING, stated that the increase in inflation in Germany in June is likely to be a temporary pause before consumer prices start to fall again. He mentioned that the rebound in the inflation rate from 6.1% in May to 6.4% signals the end of the downward trend in inflation observed over the past six months. However, there is evidence to suggest that this downward trend may gain stronger momentum after the summer.

Brzeski pointed out that food prices have been falling for the third consecutive month, and clothing prices have also seen their first decline since January. These are early signs of weak demand and declining prices. He added that with energy prices still lower than expected and a continuous decline in food prices, the potential price pressures in the service and manufacturing sectors are fading away. As a result, the decline in German inflation could be faster than expected by the European Central Bank.

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