The Bundesbank is out with its monthly report, noting that the economy is likely to have grown less than anticipated in Q3 and may face a new inflation spike come September as government subsidies expire. Adding that the energy crisis is marring the outlook and makes for a very distressing economic situation.

For some context, German government subsidies on fuel and rail tickets are set to expire on 31 August.

The German central bank says that "the future development of the energy market is very uncertain, especially with regard to natural gas deliveries from Russia" and that "the risks for the price outlook are clearly pointing upwards".