Inflation an enormous economic risk, says finance minister Christian Lindner
Jana Randow
Driven by soaring energy and food costs, data released on Monday showed consumer prices in the continent’s biggest economy jumped 8.7% from a year ago in May. Analysts surveyed by Bloomberg predicted an 8.1% advance. The inflation figures increase pressure on the government as households are further squeezed. Finance minister Christian Lindner earlier on Monday called the fight against surging prices the “top priority” while advocating an end to expansive fiscal policy.
“Consumers will have to reckon with further increases in prices because many inputs are still scarce and wholesale prices are still increasing dramatically,” he said by email. “Surprisingly good labour market data also indicate that the dreaded wage-price spiral could soon pick up speed.”
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