Bundesbank Bulletin: German inflation towards new highs in autumn

For Germany, the eurozone’s leading economy, a recession is increasingly likely, with expected inflation reaching new highs in the autumn. These, in summary, are two of the main messages that emerge on the trend of the German economy in the monthly bulletin of the Bundesbank, released today. According to experts, uncertainties and high inflation weigh on the outlook and according to current estimates, German economic output is likely to stagnate again in the summer quarter. “The high price increases are further reducing the purchasing power of households. Furthermore, concerns about an imminent gas shortage in winter weigh on consumer morale and the propensity to buy ”, write the experts, according to whom the decline in GDP in the winter months has become“ much more probable ”.