German inflation rate to ease over course of 2023 – econ minister

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FSRU ship "Hoegh Gannet" arrives in the harbour of Brunsbuettel

BERLIN (Reuters) – German inflation will remain high at the beginning of 2023 before easing over the course of the year, Economy Minister Robert Habeck said on Thursday.

“We have broken the inflation trend,” Habeck said in his address to the Bundestag regarding the annual economic report.

Inflation is seen at 6% in 2023, as energy prices ease following the initial shock of the energy crisis triggered by the Ukraine war, according to the economic report published on Wednesday.

Regarding the economic report for 2023, he said the numbers were not good, but significantly better than feared some months ago. Gross domestic product is forecast to grow by 0.2% this year, up from the autumn forecast of a 0.4% decline.

In 2024, inflation will be lower than in 2023 and growth will be higher, he added.

(Reporting by Christian Kraemer. Writing by Maria Martinez; Editing by Paul Carrel)

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