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MNI BRIEF: Bundesbank Sees Sluggish Growth, Sticky Inflation

(MNI) London

Inflation in Germany is set to slow, but still be above target over the next few years, the Bundesbank said Friday in its latest projections for the domestic economy.

Coming a day after the ECB upped its inflation projections for 2025 by 0.1 percentage point, the German data also shows harmonised national inflation above 2% at the end of the forecast horizon, with headline seen at 2.7% and core at 2.8%.

"Decisive monetary policy action is key to counteracting the economic and societal risks of more persistent inflation," Bundesbank President Joachim Nagel said presenting the report. (MNI WATCH:ECB Signals More Hiking, Raises Inflation Projection)

Growth is also seen recovering, albeit gradually in coming years, in line with recent commentary from the IMF.

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MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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