In the past, globalization, digitization and a global savings glut have been cited as reasons for such countervailing effects. Globalization keeps wages low and contributes to falling import prices, Wieland said. Online offers lead to better comparability and technological progress to quality improvements at constant prices. The savings glut is said to be the reason for very low equilibrium interest rates."These countervailing effects have at least partially disappeared in the wake of the Corona pandemic, and perhaps they will largely disappear in the medium term. If that happens, and monetary policy nevertheless remains as expansionary as it has been, then temporary price increases and accommodative monetary policy together lead to permanently higher inflation rates."
Handelsblatt: "Verbraucherpreise: Höchster Preisanstieg seit zehn Jahren" (€)