Gas and electricity price brakes should help

Berlin In its latest economic forecast, the federal government assumes that inflation will fall in the coming year. The inflation rate should be only seven percent in 2023, the Handelsblatt learned from government circles. In the current year, the rate should be eight percent. Federal Minister of Economics Robert Habeck (Greens) wants to present the autumn projection on Wednesday.

Several media reported last Thursday that the government is assuming that inflation will be even higher in the coming year than in the current year. They had also reported an inflation rate of eight percent in the autumn projection for 2023. However, the reports did not yet refer to the final figures of the economic forecast.

The government officials have now incorporated the gas and electricity price brakes planned by the traffic lights. This is the reason that the final inflation forecast for the coming year is ultimately one percentage point lower, according to government circles.