Bundesbank said in its monthly report that the Germany will be adversely affected by the unfavorable developments on the gas market in the summer quarter and beyond. Also, the likelihood of GDP falling in the coming winter half-year has therefore increased “significantly”.
Inflation rate is expected to reach “new highs” in the Autumn, and could reach the “order of 10 percent”. Outlook for inflation remains extremely uncertain, primarily due to the unclear situation on the commodity markets.
