FRANKFURT (Reuters) - Inflation in Germany will remain well below the European Central Bank’s target of just under 2 percent for another year, new estimates from the country’s central bank showed on Friday.
The Bundesbank cut its inflation forecasts for 2018 and 2019 to 1.4 percent and 1.8 percent, respectively, while nudging up its projection for this year to 1.5 percent.
Its previous estimates put price growth at 1.4 percent this year, 1.7 percent the next and 1.9 percent in 2019.
Coming a day after the ECB trimmed its inflation estimates for the euro zone as a whole, the downgraded Bundesbank projections may weaken its hand in calling for an imminent scaling down of the ECB’s monetary stimulus.
Unveiling the figures, Bundesbank president Jens Weidmann emphasized underlying inflation, which strips out the more volatile food and energy components, was on a steadily rising path that should take it from 1.3 percent this year to 1.9 percent in 2019.
The ECB targets headline inflation in the euro zone.
Reporting by Francesco Canepa; Editing by Michael Nienaber