Participants in the credit markets interpreted the report as being potentially inflationary for a reunified Germany.

One was a fall in the value of the dollar, a potentially inflationary development because it makes imports more expensive.

Just a couple of months ago, many forecasters had expected rates to be rising by now, in anticipation of a potentially inflationary growth rate.

Germany has methods for offsetting this undesired - and potentially inflationary - growth in the money supply.

The high vendor delivery time suggests developing bottlenecks that are potentially inflationary, analysts said.

Two weeks ago, mere talk of tax cuts, potentially inflationary, immediately added 30 basis points to yields.

He considers the deficit potentially inflationary because the Government is outspending its resources.

But investors took the view that the economy was slowing from a potentially inflationary pace of growth, pushing the stock and bond markets higher.

People are still buying with abandon, which is potentially inflationary.

That would hold out to foreign-exchange traders the hope of another increase in interest rates to once again try to slow a potentially inflationary economy.