English 
19 11 2024 - Macroeconomics
After seven quarters in hiding, asset price inflation is back. Its return is a story of interest rates and consumer prices.
"In accordance with Article 127(1) and Article 282(2) of the Treaty on the Functioning of the European Union, the primary objective of the ESCB shall be to maintain price stability."
Source: Official Journal of the European Union
Slowly but surely, asset price inflation is returning in Germany. Declining consumer price inflation and falling interest rates have made this possible.
The turnaround in interest rates led to falling asset prices in the northern countries of the eurozone in mid-2023. In the southern countries, a catch-up effect led to asset prices rising despite rising interest rates.
The FvS Konjunkturindikator (FvS-KI) maps the actual economic activity in Germany on a monthly basis, based on a set of hard real economic data. On the basis of the FvS-KI we carry out business cycle dating for Germany.
We track the development of the real economy in real time. Our activity index and other indicators are updated weekly.
We follow the development of consumer and producer prices. Rising commodity prices can lead to rising wages and thus to rising prices.
