Food prices have already risen sharply due to the war in Ukraine. Further price increases are also looming in other retail sectors, the Ifo researchers say. Due to the price increases, inflation in Germany is expected to remain high for the foreseeable future.
The German government has taken measures to help households with high inflation. For example, the excise duty on fuel has been temporarily reduced and public transport has temporarily become much cheaper. Thanks to these measures, inflation in Germany fell slightly in June.
