Germany’s Chambers of Industry and Commerce (DIHK) on Tuesday lowered the country’s 2022 GDP growth forecast to 1.5% vs. 3% in the February estimate.

Key quotes

“Germany's 2022 inflation rate will more than double from last year's 3.1% as already high energy and food prices are pushed up by the war in Ukraine.”

“Now expects the inflation rate to hit 7%, after initially forecasting a rise of 3.5% in its February forecast.”

“DIHK survey of 25,000 companies shows 39% of all firms want to pass cost increases on to customers.”

Market reaction

EUR/USD is keeping its range above 1.0700, up 0.17% on the day, as investors assess the latest ECB commentary and mixed German and Eurozone PMIs.