Germany’s IfW raises 2022 inflation forecast to 7.4% from 5.8%

BERLIN (Reuters) – Germany’s IfW economic institute said on Wednesday it was raising its forecast for German inflation this year to 7.4% from 5.8% previously.

For 2023, the IfW raised its inflation forecast to 4.2% from 3.4%.

IfW, one of the Germany’s leading institutes and part of a group that advises the government, nevertheless left its forecast for GDP growth this year at 2.1%. For 2023, however, it lowered its projection to 3.3% from 3.5%.

“The purchasing power of disposable incomes is massively affected by high inflation,” the IfW said. “In the current year, real disposable incomes will therefore again decline significantly.”

(Writing by Paul Carrel, editing by Miranda Murray)