High inflation is certainly placing a heavy strain on families, firms and our economies as a whole, said Bundesbank President Joachim Nagel in a joint interview with François Villeroy de Galhau, Governor of the Banque de France. Referring to the ECB Governing Council´s aim of achieving an inflation rate of 2% in the euro area in the medium term, Nagel emphasized: “We need to rein in inflation.”

The German economy grew last year despite inflation, the war in Ukraine and persistent supply problems. Price-adjusted gross domestic product (GDP) rose by 1.9%, according to initial calculations reported by the Federal Statistical Office. In calendar-adjusted terms, it found that economic growth amounted to 2.0%. “In 2022, the overall economic situation in Germany was affected by the consequences of the war in Ukraine and the extremely high energy price increases,” said Dr Ruth Brand, President of the Federal Statistical Office since 1 January 2023, at a press conference.

Dr Johannes Beermann left the Deutsche Bundesbank’s Executive Board on 31 December 2022. As a result, the Executive Board has reshuffled its areas of responsibility. The temporary reallocation of responsibilities shall apply with immediate effect.

Croatia is introducing euro cash on 1 January 2023, making it the 20th Member State of the euro area. Croatian kuna banknotes can be exchanged for euro free of charge at all Bundesbank branches between 1 January and 28 February 2023. Croatia’s accession to the euro area will change the composition of the Governing Council of the European Central Bank (ECB) and the ECB’s capital, as well as the capital key used to calculate it.