In its latest monthly economic report, the Bundesbank said that a recession in Germany in the sense of a significant, broad-based and prolonged decline in economic output is not expected. However, the German central bank acknowledged that a slow recovery in the economy is being delayed further.
Bundesbank also said that it expects a temporary rise in inflation rates towards the end of the year due to base effects but added that the core inflation is seen to remain at an elevated level due to continued strong wage pressures.