Economic researchers expect only very small price increases this year, and maybe even deflation threatens. The global recession is paralyzing the central bankers.
Pricking asparagus is not that easy. The knife is put on incorrectly and the vegetables are no longer suitable for sale. In the worst case, the root is destroyed and will bring no yield in the coming years. Not only in Austria, but also in other EU countries, there are currently no trained harvest helpers. In some places, this and the costly transportation of goods lead to drastic price increases. And yet the European Central Bank expects the inflation rate in the euro area to drop sharply this year. For Austria, the researchers at Wifo expect inflation to be only 0.9 percent. At the same time, trillions are pumped into the system. How does that fit together?
In the corona crisis, the demand for fresh food increased. People have spent a lot of time at home in the past few weeks. Because restaurants had to close, they often had no choice but to cook themselves. In Italy, the agricultural association is already complaining that the prices of vegetables and fruit have risen sharply since mid-March. In the supermarket, consumers would have to pay at least between ten percent and 25 percent more. Such things can also be heard from Germany.
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