Bundesbank said in the monthly report that inflation rate will rise to “just under 6 percent in November”. Inflation is expected to “decline noticeably in January when statistical special effects (especially the VAT base effect) expire. “But it could still be well over 3 percent for a long time,” it added.
It also expects “a breather in the economic recovery” in autumn. Industrial is likely to “continue to be burdened by delivery problems”, and thus, “dampen overall economic growth”. Risks from an intensified pandemic would exist throughout the winter half-year. “As things stand at present, the macroeconomic effects are likely to be less severe than in previous pandemic waves,” it said.
