Bundesbank President Joachim Nagel anticipates continued high levels of inflation next year and does not see them declining markedly until 2024. A dampening effect from the gas price brake is expected in December. The inflation rate could fall below 10%. “But once that one-off effect ends, inflation will initially pick up again in January and February,” Mr Nagel explained in an interview with the “Stern” magazine. “We expect the average annual inflation rate in Germany to be around 7% in 2023,” he added, noting that it would then be significantly lower in 2024. “Nevertheless, the road immediately ahead remains rocky. That is why we are resolutely maintaining our monetary policy stance. This will allow us to restore price stability in the euro area.” According to Mr Nagel, the recent 0.5% policy rate increase was a robust interest rate step. “It wasn’t the last,” he added. “As things stand today, further robust steps need to follow.” At its most recent interest rate meeting on Thursday, the ECB Governing Council decided on a further fourth interest rate step, raising key interest rates by 0,5 percentage points.