Bundesbank: Inflation to hit 4%-5% by end of 2021

The Deutsche Bundesbank revealed on Monday that the inflation rate in Germany will reach its highest level of between 4% and 5% by the end of 2021.

In its latest monthly report, the German central bank predicted that inflation will decline significantly at the beginning of next year, but that it will remain over 2% by the middle of 2022.

Overall, the economic recovery accelerated over the summer of 2021, especially in the labor market, private consumption and the services sector, the Bundesbank noted. However, “the production level continued to lag behind the strong demand” mostly due to supply bottlenecks.

Breaking the News / MS