Bundesbank says inflation risks clearly skewed to the upside

The Bundesbank said German inflation is likely not to be as severe as it was after the pandemic, but a range of risks could push price growth above current expectations. In a report on Monday analyzing current inflation dynamics, the Bundesbank said the most prominent risks include commodity prices remaining high or continuing to rise, as well as increases in prices for food, non-energy goods and services. "Given the different mix of shock factors, a repeat of the high-inflation phase of 2021-2022 currently appears unlikely. However, inflation risks are clearly tilted to the upside," the report said.