Joachim Nagel called ECB rate hikes "increasingly likely" as German inflation hit 2.9% in April, driven by Iran-conflict energy disruptions. ZEW expectations beat forecasts sharply, but current industrial conditions approached COVID-era lows.
German CPI rose to 2.9% year-on-year in April, sustaining price pressures that have shifted the ECB's baseline scenario to one where further rate hikes are increasingly likely according to Bundesbank President Nagel. Source
