The Bundesbank yesterday predicted that German inflation would remain above 2 percent through 2024 — an outlook that would amplify calls within Europe’s largest economy for a speedy removal of monetary stimulus.
Outgoing Bundesbank President Jens Weidmann said that price pressures could be even stronger and that the European Central Bank must not ignore those risks.
The central bank expects consumer prices rising an average 3.6 percent next year before slowing to 2.2 percent in the subsequent two years. The forecasts are higher than in the 19-nation eurozone.
The Bundesbank said that inflation in Germany reflects strongly rising wages, a “favorable economic