{"id":57480,"date":"2026-03-13T03:48:59","date_gmt":"2026-03-13T07:48:59","guid":{"rendered":"https:\/\/newssprinters.com\/index.php\/world\/economist-warns-iran-war-could-push-german-inflation-to-6\/13\/03\/2026\/"},"modified":"2026-03-13T03:48:59","modified_gmt":"2026-03-13T07:48:59","slug":"economist-warns-iran-war-could-push-german-inflation-to-6","status":"publish","type":"post","link":"https:\/\/newssprinters.com\/index.php\/world\/economist-warns-iran-war-could-push-german-inflation-to-6\/13\/03\/2026\/","title":{"rendered":"Economist warns Iran war could push German inflation to 6%"},"content":{"rendered":"
\n<\/p>\n
\n\n
\n
<\/div>\n<\/div>Torsten Schmidt, Head of the “Growth, Economy, Public Finance” Competence Center at the Leibniz Institute for Economic Research (RWI), takes part in a press conference on the new economic forecast by leading economic institutes in Berlin. Christoph Soeder\/dpa <\/figcaption><\/figure>\n
An economist at the Leibniz Institute for Economic Research (RWI) has warned that inflation in Germany could temporarily rise to 6% if the Iran war drags on for more than four weeks.<\/p>\n
“High oil prices drive consumer prices. In the case of a prolonged war, inflation could temporarily rise to 6% this year,” Torsten Schmidt told the Rheinische Post newspaper in remarks published on Friday.<\/p>\n
That would wipe out economic growth and push Germany into a fourth consecutive year of recession, he said.<\/p>\n
If the war lasts more than four weeks and Iran continues to destroy oil and gas facilities in the Gulf states, real shortages could emerge on the global market, Schmidt said.<\/p>\n
“In that case, I also consider an oil price of $150 per barrel possible,” he added.<\/p>\n
If the war ends by the end of the month, however, inflation would not rise as sharply, Schmidt said. “The inflation rate will climb to 3% in the summer. For the full year, we expect 2.6%.”<\/p>\n
Fuel prices are also likely to remain elevated in the near term, according to Schmidt.<\/p>\n
“Prices for petrol and diesel will initially remain at a high level, around \u20ac2 [$2.30] per litre,” he said.<\/p>\n
Schmidt also expressed concern about Germany’s gas supply, noting that storage facilities are currently only about 20% full.<\/p>\n
“I see the risk that we will not be able to fill the gas storage facilities before winter \u2013 especially if the Iran war lasts longer than expected,” he said.<\/p>\n
At current high prices, traders have little incentive to store gas, Schmidt added.<\/p>\n
“With gas, we are literally playing with fire,” he said, suggesting the creation of a strategic gas reserve similar to strategic oil reserves.<\/p>\n<\/p><\/div>\n