In its monthly report published on Monday, Germany's Bundesbank said that it expects inflation in Germany to be just below 6% in November, as reported by Reuters.

Additional takeaways

"Germany's headline inflation seen well above 3% for longer, core inflation substantially above 2%."

"The economic recovery will likely take a breather."

"From today's standpoint, GDP could tread water in the autumn quarter of 2021."

"Macroeconomic conditions also point to stronger wage increases for collective bargaining agreements to be renewed in the near future."

Market reaction

These comments don't seem to be having a significant impact on the shared currency's market reaction. As of writing, the EUR/USD pair was posting small daily losses at 1.1280.