Bundesbank remarks in its monthly report on the German economy
- Prolonged lockdown, VAT increase contributed to weaker private consumption
- Only parts of the economy are not directly affected by tighter restrictions
- Those parts i.e. construction, production maintained a robust underlying trend
- Manufacturing industry does not have a renewed demand problem
- The industry's recovery will continue
- Higher inflation can be expected from 2H 2021 due to base effects
- They could very well exceed 3% by the end of the year
All in all, nothing that really stands out all too much from the Bundesbank. The remarks are pretty much in-line with the market's current train of thought already.
