Bundesbank Slashes German Inflation Forecasts on Oil Slump
- German central bank cuts 2016 inflation prediction to 0.25%
- Still sees economy growing faster in 1Q on domestic spending
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The Bundesbank slashed its forecast for German inflation due to recent declines in the price of oil, in an unscheduled adjustment to its economic outlook.
Consumer-price growth in Europe’s largest economy will now average approximately 0.25 percent in 2016, down from a December prediction of 1.1 percent, the Frankfurt-based central bank said in its monthly bulletin published on Monday. For 2017, the forecast was cut to 1.75 percent from 2 percent.