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1/24, 12:50 PM (Source: TeleTrader)
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Inflation likely to remain high at start of 2022 - Buba

The harmonized index of consumer prices in Germany "is likely to remain extraordinarily high" at the beginning of the current year, the Bundesbank revealed on Monday in its latest monthly report. For full 2021, the index rose by 3.2%, compared to a 0.4% increase in 2020, the German central bank pointed out, attributing the jump in 2021 to "the introduction of the climate package, the recovery in crude oil prices and the reversal of the temporary reduction in VAT rates."

Germany's GDP growth stood at 2.7% in 2021, failing to offset the 4.5% economic contraction recorded in 2020. In 2021, the economic recovery was restrained by the coronavirus pandemic and supply disruptions and the sectors that suffered the most were hospitality, arts, entertainment and recreation, according to the Bundesbank.

The unemployment rate declined by 0.1 percentage points to 5.2%, while labor demand stayed high, the data shared by the central bank also showed.

Baha Breaking News (BBN) / MS