Germany sees 2022 growth forecast halve and inflation projection double

The update from the Bundesbank is broadly in line with the European Central Bank's revisions of its own forecasts on Thursday. Picture: Krisztian Bocsi/Bloomberg

The Bundesbank cut its growth projections for the German economy on Friday and predicted sharply higher inflation, as soaring food and fuel prices sap households' purchasing power and batter confidence.

The German central bank now sees prices rising by 7.1% in 2022, well above the 3.6% projected in December while the 2023 figure was raised to 4.5% from 2.2%.