Bundesbank said in its monthly report, “the German economy is likely to have stagnated in spring 2022.” High inflation is having a negative impact on the purchasing power of private households. Also, poor consumer mood due to the uncertainty about further economic development was noticeable in the sharp fall in sales in retail and vehicle trade
On prices, Bundesbank continues to expect high inflation rates in the coming months. Inflation could even rise again in September because the temporary relief measures will no longer apply. The further development of the energy commodity markets is very uncertain, especially with regard to natural gas deliveries from Russia. The risks for the price development are pointing upwards.
