24 March 2004, 15:47  Buba's remsperger sees no German deflatrion tilt

The outlook for low inflation in Germany is favourable and there is no risk of deflation emerging, Bundesbank chief economist Hermann Remsperger said on Wednesday. "I continue to expect a low inflation rate in the future," he said. "I don't think that we have to expect deflationary tendencies because of this low inflation rate." Deflation requires both falling prices and shrinking output, which is not the case in Germany where the Bundesbank sees a moderate economic upturn, said Remsperger at the Bundesbank's annual news conference. German consumer prices rose 1.1 percent year-on-year in March, at a stronger pace than a month earlier, but still one of the lowest rates in the euro zone.||

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