Consumers – Hanover – High inflation rate: Minister sees danger for society – economy
Hanover (dpa / lni) – In view of the sharp rise in consumer prices, Lower Saxony’s Finance Minister Reinhold Hilbers sees dangers for the broad middle of society. This means a loss of prosperity and purchasing power, said the CDU politician in a statement distributed on Thursday. This could trigger a wage-price spiral that would jeopardize economic recovery.
In March, the inflation rate in Germany rose to its highest level since reunification. Consumer prices are 7.3 percent above the level of the same month last year, as reported by the Federal Statistical Office based on preliminary data.
Hilbers emphasized: “This number is worrying, a further increase cannot be ruled out. In particular, the low and middle incomes are significantly affected here.”
He considers a quick turnaround in interest rates by the European Central Bank (ECB) to be indispensable. For years there was too much money in the market due to the policy of the ECB, which had already driven inflation before the war in Ukraine. Other central banks set an example in raising interest rates – the US Federal Reserve has already done so.
© dpa-infocom, dpa:220331-99-743617/2