Bundesbank Lowers German Inflation Forecasts On Falling Oil Prices

(RTTNews) - Germany's inflation forecasts for this year and next were lowered by the Bundesbank on Monday, citing the decline in oil prices.

The inflation forecast for this year was cut to around 0.25 percent from the 1.1 percent projected earlier, the German central bank said in its monthly bulletin.

Next year, prices are expected to rise only 1.75 percent, which was weaker than the 2 percent increase seen earlier.

Inflation could fall into negative territory in the coming few months if the oil price weakness continues.

The Bundesbank also said that German growth is set to pick up in the first quarter of this year, driven by domestic consumption, thanks to a strong labor market.