ECB’s Nagel: German Inflation Easing More Slowly than Expected
19 December 2025
By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Joachim Nagel said on Friday that inflation in Germany has been declining at a slightly slower pace than previously expected.
Presenting updated projections from the Deutsche Bundesbank, which he heads, Nagel said Germany’s economic growth “will regain momentum in 2026: while progress will initially be modest, it should then gradually strengthen.”
The Bundesbank now envisioned economic growth of 0.2% in 2025, up from earlier projections of stagnation, while growth in 2026 was seen lower than it had been at 0.6%.
On inflation, Nagel said the disinflation process has been somewhat slower than anticipated. The Bundesbank expects inflation to decline more gradually than previously forecast, partly reflecting strong wage growth and smaller-than-expected falls in energy prices.
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