Weidmann: inflation heading ‘in the direction of 5%’
But the Bundesbank president defends the ECB’s new policy framework
Inflation in Germany could climb as high as 5% by the end of the year, Deutsche Bundesbank president Jens Weidmann warned on July 24.
“Inflation rates will increase strongly, to begin with,” Weidmann said. “For Germany, say, my experts are expecting rates to potentially go in the direction of the 5% mark towards the end of the year.”
Wiedmann added, however, that this increase would likely be driven mostly by temporary factors such as energy prices and the reversal of a VAT cut. “Inflation
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