Bundesbank said in the monthly report that inflation in Germany “continue to rise before it gradually declines in the coming year.” Industrial products prices continued to increase. Energy prices have risen mainly due to higher oil prices. “On the other hand, the considerably higher spot market prices for natural gas will probably only have an impact on consumer prices after the turn of the year.”
The economy is expected to “growth significantly weaker” in Q4. Strong momentum in service sector is “likely to subside considerably” too. Manufacturing is likely to “continue to suffer from delivery problems. Output will probably “still fall short of its pre-crisis level of the final quarter of 2019 in Autumn. For 2021, GDP growth is likely to be “significantly less than was expected in the Bundesbank’s June projection.