President of the German Federal Bank (Bundesbank) and member of the Governing Council of the European Central Bank (ECB) Joachim Nagel believes inflation in the eurozone could peak in December and exceed 10%, Report informs via TASS.
Nagel noted that a slowdown in economic growth or a recession could not be ruled out.
“However, the bottom line is that stable prices are ultimately much more important for medium and long-term growth and sound economic prospects for the eurozone,” he stressed, nevertheless warning that a period of economic hardship might have to be overcome. At the same time, the head of the Bundesbank believes that price growth will accelerate, and inflation will peak in December and will exceed 10%.
“Prices are likely to continue to rise. And the peak of inflation in December may well be more than 10%,” Nagel said. At the same time, he pointed out that in 2023 the annual inflation rate will decrease slightly, but it will probably be too high and exceed 6%.
According to the European Commission, in August, the average inflation rate in the eurozone hit a record high of 9.1% year on year.