Bundesbank President Joachim Nagel has warned of persistently high inflation. “Even before the war against Ukraine, the inflation rate was very high. [...] Given the surge in energy prices on account of the war, consumer price inflation is likely to pick up again substantially, particularly in the near term,” Mr Nagel said in a speech delivered at a change of office ceremony in Hanover. As members of the ECB Governing Council, he remarked, we must now ensure that the strong inflation does not become entrenched and does not lead to excessively high inflation in the medium term.

The group of emerging market economies have experienced impressive growth over the past 20 years, substantially boosting their share of global economic output and worldwide trade. Recently, however, economic momentum has tailed off considerably in a large number of emerging market economies, and the growth lead they once enjoyed over the industrial countries has narrowed.

Germany’s current account recorded a surplus of €19.6 billion in September 2021, up €4.2 billion on the previous month’s level.