Inflation target of two percent: probably wishful thinking!

Article by Dr. Christian Jasperneite

Since the inflation rate peaked in fall 2022, the rate of price increases has fallen significantly. Inflation rates in most countries are now back between two and three percent and therefore within a reasonably tolerable range. The still restrictive monetary policy - in conjunction with an economy that is still not booming - will also help to ensure that inflation rates continue to fall in the coming months. It could therefore be said that the spectre of inflation has been tamed.

In this issue of "Economic Situation and Strategy", we highlight a few reasons why the situation could be a little more complex.