Server time is correct, EE time is off by 1 hour.
Example:
{current_time format="%Y %m %d %H:%i:%s"}
<?php echo date('Y m d H:i:s'); ?>returns
2013 08 01 12:52:19
2013 08 01 13:52:19No matter what time zone I set EE to under Admin > Localization Settings, no matter if with or without Daylight Saving Time, no matter if logged in or not, {current_time} will always return the same, wrong date.