German government forecasts 2022 inflation at 3.3%

BERLIN – The German government expects inflation to reach 3.3% on average this year, after skyrocketing to 3.1% in 2021, according to a draft of the annual economic report seen by Reuters.

The government is still forecasting core inflation, excluding increases in food and energy prices, to be at 2.5% in 2022, said the draft.

The cabinet is expected to adopt the draft on Wednesday.

(The story corrects inflation rate in headline to 3.3%, not 3.1%)

(Reporting by Holger Hansen, Christian Kraemer, writing by Miranda Murray, editing by Kirsti Knolle)