Adds that German inflation could stay above 2% through to mid-2022
- Inflation between 4% and 5% is possible on a temporary basis
- Likely to decrease at the start of 2022 but still above 2% by middle of the year
The German central bank remarks in its monthly report but I reckon the key word in all of this is that they still view such price increases as "temporary". However, this is the can being kicked down the road as policymakers had previously viewed this transient nature to wear off by the end of this year, instead the forecast is pushed back to 1H 2022 now.
