How to Predict Inflation

We expect inflation to rise further this year. But while the current phase of higher inflation will last longer than originally expected, we expect inflation to decline in the course of next year. Meanwhile, german car makers, who are an important part of the country's economy, will benefit from clearing a back log. Once these shortages start to ease, there will be a catch up in the production of cars. As production bounces back and labour shortages ease, the supply of goods will increase, and this should bring inflation down. If government spending creates too much demand, or if not enough people decide not to return to the work force, then inflation might be around for a little bit longer. We learned