The Bundesbank cut its inflation forecast for Germany this year, reflecting the euro area’s battle with subdued price pressures.
A Greek exit from the euro would further depress drug prices throughout Europe, creating an additional dilemma for manufacturers already wrestling with how to keep supplies flowing as Greek health-care funds dry up.
European Central Bank President Mario Draghi re-affirmed that interest rates will stay low for the foreseeable future, after officials cut their inflation forecast for next year.
Germany’s unemployment rate held near a two-decade low, potentially buoying support for the government before September elections, while the rate in the euro area stayed at a record high.
German unemployment fell more than forecast in December as exports of cars and machinery boomed and one of the mildest winters on record helped support jobs in construction.
German industrial production surged the most in more than a year in April as construction activity surged after an unusually long winter damped output.
German factory orders surged almost four times as much as economists forecast in October, driven by foreign demand.
German business confidence rose for a third month in July, indicating that Europe’s largest economy is recovering as the 17-nation euro region tries to shake off its longest-ever recession.
German unemployment fell twice as much as economists forecast in March as instability in the Middle East and the crisis in Japan failed to deter companies from hiring.
"Inflation will remain at this level because of low energy and food prices."
- Mario Gruppe on Aug 28, 2014