Bundesbank President Joachim Nagel told Rheinischen Post, “the probability is rising that inflation will be higher than previously forecast and will average six point something next year.” That compares with Bundesbank’s prior projection of 4.5% inflation in 2023. “With the high inflation rates, further interest rate hikes must follow,”he added.
Nagel also admitted that the German economy is “likely” to suffer a recession over winter, if energy crisis continues to deepen, as it’s among the most exposed to Russian gas disruptions.
