Germany’s Economy Is Taking a Breather but Inflation Isn’t, Bundesbank Warns

Germany’s Economy Is Taking a Breather but Inflation Isn’t, Bundesbank Warns
The new 100 and 200 Euro banknotes are presented at the headquarters of Germany's Federal reserve Bundesbank in Frankfurt, Germany on May 21, 2019. Kai Pfaffenbach/Reuters
Reuters
Updated:

FRANKFURT—The German economy is taking “a breather” as a lack of goods and labour as well as new restrictions designed to fight the coronavirus pandemic put an end to its recent boom, the country’s central bank said on Monday.

The Bundesbank also warned that inflation in Europe’s largest economy was likely to stay well above 3 percent for some time and upcoming wage negotiations should deliver large increases.