Bundesbank expects ten percent inflation
The Bundesbank expects a recession in the coming winter
The Bundesbank’s monthly report states that gross domestic product in Germany is likely to shrink at the end of the year due to the ongoing energy crisis. The probability of this has increased significantly due to the unfavorable developments on the gas market.
For the fall, the German central bank expects inflation rates of around ten percent. Next year, too, inflation could be higher than previously thought, for example because of continuing supply bottlenecks and geopolitical tensions.
Bundesbank President Nagel advocated further interest rate hikes by the European Central Bank.
The president of the German Institute for Economic Research, Fratzscher, said on Deutschlandfunk that many people could not protect themselves against inflation. More and more people were dependent on food banks and went to debt counseling, he said. To protect social peace, Fratzscher called for a monthly energy allowance of 100 euros per person.