UPDATE 2-Germany supports central banks’ view that the inflation jump is temporary, according to Scholz
* Scholz “takes a close look” at inflation
* But sees a lot of things suggesting that the valuation of cenbanks is correct
* Said the economy could grow faster than expected (adds details on inflation)
BERLIN, June 2 (Reuters) – Germany is closely monitoring the recent rise in inflation, but the government shares central banks’ assessment that the rise in consumer prices is largely due to temporary factors, has Finance Minister Olaf Scholz told Reuters on Wednesday.
When asked if the surge in inflation and the European Central Bank’s ultra-accommodative monetary policy could become a problem for Germany, Scholz said: “We’re still looking at this closely. But so far there is a lot to suggest that central banks’ assessment is correct. “
“We can now also hope for a decent recovery in the economy, where we are gradually leaving the pandemic behind us,” added Scholz. “It will also be possible for us to do even better than what we can currently foresee. “
Economy Minister Peter Altmaier said on Tuesday that Germany’s economy, Europe’s largest, is expected to grow between 3.4% and 3.7% this year, offering a more optimistic outlook than when the government raised its forecasts at the end of April.
With the recovery come concerns about inflation.
Annual consumer price inflation in Germany accelerated in May, exceeding the ECB’s target close to but below 2%, the Federal Statistics Office said on Monday.
Bavarian Finance Minister Albert Fueracker told the Bild daily in comments published Wednesday that higher inflation is worsening the plight of savers and that the European Central Bank should respond by raising interest rates by 0%.
“Germany is a country of savings. The ECB’s long-standing zero interest rate policy is poison for typical savings plans, ”Fueracker, member of the Conservative Christian Social Union of Bavaria (CSU), told the daily newspaper mass circulation. .
“In combination with inflation now on the rise, expropriation for savers is becoming more and more noticeable. Bavaria has been warning for years that the zero interest rate policy must be ended – now it is high time, ”he said.
Conservative Germans have long complained that the ECB’s 0% interest rates hurt savers because they end up with little to no gain – a problem made worse by rising inflation eroding the value of their pips.
Monday’s price figures for May showed a national measure of inflation reached 2.5%, the highest level since 2011. (Edited by Paul Carrel and Madeline Chambers)