1 See Deutsche Bundesbank, The potential macroeconomic impact of US tax reform, Monthly Report, February  2018, pp. 14–16. 2 See Deutsche Bundesbank, The magnitude of the United States’ bilateral trade balances, Monthly Report, July  2017, p. 87 f. 3 See Deutsche Bundesbank, The international spillover effects of an expansion of public investment in Germany,  Monthly Report, August 2016, pp 13–17.
Inflation is expected to rise further in the near term, mainly owing to upward base effects in the energy and food components. Looking further ahead, inflation is expected to remain moderate over the policy-relevant horizon, with overall price, cost and wage developments staying subdued in line with a slow recovery in demand in the euro area and elsewhere.