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Bundesbank Says There Are Mounting Signs of Recession in Germany

  • Central bank sees ‘noticeable’ contraction in winter quarters
  • Inflation rate could enter double digits in coming months
A souvenir kiosk in Munich.

A souvenir kiosk in Munich.

Photographer: Krisztian Bocsi/Bloomberg

Hints of a recession in Europe’s largest economy are becoming more evident after a significant deterioration in supply conditions, the Bundesbank said.

Throttled energy shipments in particular as a direct consequence of Russia’s war in Ukraine are leading to soaring prices and mounting uncertainty in Germany affecting both companies and households, the central bank said in a monthly report on Monday.