World Economic outlook - german inflation rate forecast 2012- 2013 : As usual, the Federal Statistics Office provided few details on price developments with the flash release. It pointed to data from reporting states that showed annual price developments were again marked by strong price increases of household energy and motor fuel.
The German Bundesbank last month also forecast an annual inflation rate of 1.8% in 2012, pointing to easing domestic price pressure and decelerating global commodity prices. For 2013, the central bank projected inflation to slow further to 1.5%.
"Risks to the inflation outlook primarily stem from oil prices and exchange rates," the Bundesbank said. "Given the projected global economic developments, it is quite possible that the oil prices will not ease significantly but will remain at current levels." A more pronounced global slowdown, on the other hand, could exert downward pressure on commodity prices, it said.