Germany's Steinbrueck Warns of Rising Inflation in Coming Years

(CEP News) Frankfurt –

Tue Feb 24, 2009 

 With interest rates at low levels around the world and a number of stimulus packages in the pipeline, inflation will likely accelerate in the coming years, German Finance Minister Peer Steinbrueck warned.

According to German newspaper Handelsblatt, finance ministers in Europe spoke "intensively" about measures to combat high price growth in the medium term, as well as the need to come up with a suitable exit strategy following the crisis.

The German newspaper also quoted Steinbrueck saying it would be "very difficult" to drain the excess liquidity from the market after the crisis has ended.

The Finance Minister, along with his French counterpart Christine Lagarde, said an exit strategy would only work "if it was a joint and co-ordinated effort."