According to the German industry, high inflation is expected to continue for the next few months

BERLIN (Reuters – Germany’s current inflation rate is not expected to fall rapidly and the European Central Bank’s goal of 2% by the middle decade will only be possible, according to the BDI industry association in a survey published for Reuters on Friday.

According to Siegfried Russwurm, President of BDI, inflation has slowed to 11.3% in November, down from 11.6% in October. This is despite the fact that energy costs are not the only factor driving inflation, he said. He also spoke out in a survey with several industry associations.

He said, “Returning to a level of 2 percent is unlikely to happen quickly and can only be achieved in the middle of the next decade if monetary policies take effect.”

To counter inflation, the ECB raised interest rates by 2.5 percentage points in July – its fastest pace ever of monetary tightening –

Russwurm claimed that more measures would be taken by the ECB. The BDI believes this will dampen investment activity.

Inflation will not be slowed down by the ZDH German Association for Skilled Trade and DIHK Chambers of Industry and Commerce, according to their heads.

Holger Schwannecke, ZDH Secretary General, stated that a noticeable slowdown in price rises is unlikely until summer 2023. “But even then, the price level will still remain high.”

Peter Adrian, President of DIHK, believes that the ECB started its interest rate increases too late. This means that it must now raise them even faster. This makes corporate financing more difficult, and adds to the burden on businesses.

(Reporting by Rene Wagner; Writing by Miranda Murray; Editing by Alexandra Hudson)