Price rally could continue for years

Berlin Rising energy prices are becoming a lasting burden for German companies and consumers. The Ukraine war and decarbonization have pushed prices to record highs in recent months. So far, there has been a prospect of an improvement in the near future, but new calculations are dampening this hope considerably.

According to a study, significant price increases due to expensive gas and oil will be seen in Germany by 2024. Because these are used everywhere as sources of energy and raw materials, this affects the entire economy: prices continue to rise in almost all sectors, and a noticeable decline is not to be expected thereafter. On the contrary, prices remain at a high level.

This is the result of a new forecast by the Association of Research-Based Pharmaceutical Manufacturers (VFA), which is available to the Handelsblatt. The economists Claus Michelsen and Simon Junker, who until recently jointly headed the business cycle department of the German Institute for Economic Research (DIW), are responsible for the study.