Germany’s central bank chief Joachim Nagel has warned that the country’s inflation rate could surge to over 10 percent in the autumn amid an energy squeeze prompted by Russia tightening gas supplies.
Nagel made the comments in an interview with the Rheinische Post on Aug. 20, as inflation across Germany rose to a 40-year-high of 7.5 percent in July from a year ago, driven primarily by an increase in energy prices.
“The issue of inflation will not go away in 2023,” Nagel told Rheinische Post. “Supply bottlenecks and geopolitical tensions are likely to continue,” he added, noting that Russia has “drastically reduced its gas supplies” to Germany, and “natural gas and electricity prices have risen more than expected.”…