FX.co ★ Inflation in Germany can reach 10% due to rising energy costs

Inflation in Germany could reach 10% if restrictions on Russian energy imports are imposed, Deutsche Bank’s vice president Karl von Rohr said.

According to Rohr, Deutsche Bank sees inflation rise to 7-8% over the year. If Russian energy imports are sanctioned, prices could jump to 10% or higher.

Sanctions on Russian commodities could push inflation up to levels unseen since the 1970s, he noted.

Earlier, Germany’s economy minister and vice-chancellor Robert Habeck stated that an embargo on Russian gas would undermine the country’s economy. The president of the Federation of German Industries (BDI) Siegfried Russwurm warned that a Russian energy ban would throw the German industry into chaos.

In early April, German chancellor Olaf Scholz spoke out against imposing an embargo on Russian energy imports. According to Scholz, Germany would face increased energy costs due to importing gas from other countries.