The German economy's underlying cyclical trend is fairly robust. According to the projection, this year's economic growth is being additionally boosted by purchasing power gains resulting from renewed falls in crude oil prices and from an expansionary fiscal policy.

There are additional insights to be gained from going beyond established calculation variables and incorporating inflation options when analysing inflation expectations: so reads the Bundesbank’s recommendation in the June edition of its Monthly Report. Expectations regarding future inflation developments are of major importance to the credibility and effectiveness of a monetary policy with a clear focus on price stability.