BERLIN, Jan 1 (Reuters) – Germany’s finance minister expects inflation in Europe’s biggest economy to fall to 7 percent this year and continue to fall in 2024 and beyond, but he believes high prices of energy will become the new normal.
“The target remains 2%. This must be a top priority for the European Central Bank and the German government,” Christian Lindner said in an interview with Bild newspaper published on Sunday.
Pushed by rising energy prices following Russia’s invasion of Ukraine and falling Russian energy exports, Germany’s year-on-year inflation slowed slightly in November to 11.3% from of 11.6% of the previous month. Read more
Lindner said Germany needed an “unbiased” energy policy to keep the industry going, adding that domestic oil and gas fracking and nuclear power should be factored into the energy mix along with renewables.
“The ban (of fracking) should fall. Then private investors can decide if mining is economic,” he added.
Natural gas and oil production has been declining in Germany, mainly because unconventional fracking is banned and nature protection laws make it difficult to get permission for new drilling.
Report by Riham Alkousaa; Editing by Andrew Cawthorne
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