The Strategist

Bundesbank forecasts average annual inflation in Germany in 2022 at 6%

04/07/2022 - 10:06

Head of the Bundesbank Joachim Nagel said that inflation in Germany could average 6% in 2022.

"We expect that annual average inflation in 2022 could reach 6 percent. And that, of course, is too much," Nagel said in an interview with ARD television.

The head of the Bundesbank noted that the issue is of universal concern. The government cannot allow inflation to fix at a high level as rising prices are particularly painful for people with low and medium income. Further increases in energy prices would hit the real economy, Nagel said.

The country's annual inflation rate accelerated to an all-time high of 7.3 percent from 5.1 percent a month earlier, according to the preliminary estimate of the German Federal Statistical Office (Destatis).