Although some energy prices have recently fallen again, inflationary pressure in the euro area is likely to remain high.

The chief economist at the European Central Bank (ECB), Philip Lane, explained this at a panel discussion in New Orleans.

"This is not an indicator of overall inflation dynamics," Lane said.

In December, the inflation rate in the euro zone fell to 9.2 percent, and the rate in Germany fell to 8.6 percent according to the national calculation method.

The energy sector provided relief.

Meanwhile, core inflation in the eurozone hit a record 5.2 percent.

With wage increases so far lagging behind those price hikes, there is a gap that "will keep inflation under pressure for years to come," Lane said.

The initial energy shock from the war in Ukraine and the impact of the pandemic are likely to be reflected in wages for "the next two or three years".

In its "Economic Bulletin" published on Monday, the central bank published the expectation of very strong wage growth in the coming quarters in the euro area.

This reflects robust labor markets that have so far weathered the economic slowdown well.

Higher minimum wages also contribute to this.

However, the rather weak economic prospects will ensure that wage developments will not get out of hand, write the ECB experts.

Despite the recession worries, the labor market in the eurozone has held up exceptionally well so far.

According to the statistics agency Eurostat, the unemployment rate in November remained at the low level of the previous month of 6.5 percent.

In Germany, meanwhile, there are increasing signs that the economy may face a period of weakness, but not a sharp downturn.

The manufacturing industry even produced slightly more in November than in the previous month, the Federal Statistical Office announced on Monday.

While the consequences of expensive raw materials and interest rate increases are having an impact on the construction industry and energy-intensive sectors, the automotive industry is growing noticeably.

“Industrial production stabilized in November after a weak start to the fourth quarter.

The mood in companies has brightened up recently, and slowly dwindling material bottlenecks could continue to support industrial activity in the coming months," commented the Federal Ministry of Economics.