German Economy Ministry: Sustained increase in inflation is not expected

With inflation a hot topic worldwide, the German Economy Ministry said in its latest statement on Friday, they are not expecting a sustained increase in inflation.

Additional quotes

“No signs of a wage-price spiral that could lead to permanently high inflation.”

“Sees positive underlying momentum of overall economy persisting.”

“Sees two-speed economy with services sector benefiting from easing of restrictions, industry sector to be hit by supply bottlenecks.”

Market reaction

EUR/USD is trading listlessly below 1.1750, awaiting fresh trading impetus from the US Consumer Sentiment data.