According to President of the Deutsche Bundesbank Joachim Nagel, at present, inflation in Germany is falling slowly. However, it is causing concerns among monetary authorities.
"It seems we have passed the peak of inflation," Nagel told reporters, speaking alongside German Finance Minister Christian Lindner. "The 10 interest rate hikes - and this is crucial from the central bank's point of view - are having their effect," he said.
Currently, the energy crisis is greatly affecting the country's GDP. The situation is also exacerbated by high interest rates and weak global demand for exports, which is experiencing pressure. Preliminary estimates unveiled that by the end of 2023, the indicator will drop by 0.4%.
Notably, both Nagel and Lindner stressed that Germany was not the sick man of Europe, as some analysts have suggested. They emphasized "a robust labor market with strong wage growth" and rising consumption.
