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Bundesbank says will cut inflation forecast due to low oil price

Published 19/01/2015, 11:34
© Reuters. Weidmann, chief of Germany's Bundesbank speaks during a news conference in Berlin

FRANKFURT (Reuters) - The low price of oil will result in consumer prices in Germany rising only slightly this year, the country's central bank said on Monday, announcing that it would cut its inflation forecasts for 2015.

"The rate of inflation ... must be corrected sharply downwards," the Bundesbank said in its monthly report.

"If the oil price listings stay at the current level, then the consumer prices in Germany will rise only a little in the current year," it said.

© Reuters. Weidmann, chief of Germany's Bundesbank speaks during a news conference in Berlin

Price inflation is an important benchmark of the economy's robustness and will guide the European Central Bank in deciding when to embark on money printing to buy state bonds, known as quantitative easing.

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