Germany is about to see its highest inflation in decades, the president of the nation’s central bank, Joachim Nagel, told the Rheinische Post on Saturday, adding that Germany might fall into a recession.
“An inflation rate of even 10% is possible in the autumn months,” Nagel told the paper, adding that the latest surge in energy prices caused by reduced supplies from Russia – Germany’s major supplier – is likely to drive consumer prices further up.
“Double-digit inflation rates were last measured in Germany more than 70 years ago,” the Bundesbank president added. The nation saw a similar inflation level back in 1951 when it reached 11%, according to calculations made at that time, according to German media.
The situation in the national economy is likely to remain tense next year as well, Nagel warned, adding that “the issue of inflation will not go away in 2023” since “supply bottlenecks and geopolitical tensions are likely to continue.”