Friday, 21 May, 2021
(BFW) Bundesbank: German Inflaton Could Temporarily Reach 4% in
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2021-05-21 10:00:00.8 GMT
By Carolynn Look
(Bloomberg) — “In the coming months, the rate of inflation
is likely to continue on a slow upward trajectory at first,”
Germany’s Bundesbank says in monthly report.
* From July, base effect from last year’s VAT cut will put
upward pressure on headline inflation rate, which will be offset
initially by one-off effects from statistical re-weighting of
package holidays, report says
* “At the end of the current year, however, this one-off effect
will once again intensify inflationary pressures. As a result,
the inflation rate could temporarily rise to 4%.”
* “German economic output is likely to grow again
significantly in the second quarter”
** “GDP could then grow strongly in the third quarter and exceed
its pre-crisis level as early as the fourth”
To contact the reporter on this story:
Carolynn Look in Frankfurt at clook4@bloomberg.net
To contact the editors responsible for this story:
Paul Gordon at pgordon6@bloomberg.net
Jana Randow
https://blinks.bloomberg.com/news/stories/QTG4MJT1UM10
