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Germany's IFW institute sees 2026 inflation at 2.5% (prev. 1.8%), GDP at 0.8% (prev. 1.0%), 2027 GDP at 1.4% (prev. 1.3%)

Germany's IFW institute raising its inflation forecast significantly while slightly lowering GDP expectations indicates a potential tightening of monetary policy.

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Germany's IFW institute sees 2026 inflation at 2.5% (prev. 1.8%), GDP at 0.8% (prev. 1.0%), 2027 GDP at 1.4% (prev. 1.3%)

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A higher inflation projection could pressure the ECB to reconsider its rate path, while a dip in GDP growth may signal underlying economic concerns, impacting risk sentiment across the region.

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