However, inflation was already on a strong upward trajectory even before the war broke out, what with the global economy recovering unexpectedly quickly from the coronavirus crisis. Supply wasn't always able to keep up, and supply chains were disrupted. Inflation in Germany will probably remain high next year, too.
I believe it is likely that, on an annual average, we'll see a seven before the decimal point. And the risks are clearly tilted to the upside given the tensions in energy markets. As for the euro area, the impact of the energy crisis will likely be less pronounced than it will be on Germany.