German Economy Minister Robert Habeck predicted on Thursday that inflation will remain high at the start of 2023 before declining throughout the course of the year.

Regarding the yearly economic report, Habeck stated in his address to the Bundestag, “We have broken the inflation trend.”

Inflation is seen at 6% in 2023, as energy prices ease following the initial shock of the energy crisis triggered by the Ukraine war, according to the economic report published on Wednesday.

Regarding the economic report for 2023, he said the numbers were not good, but significantly better than feared some months ago. Gross domestic product is forecast to grow by 0.2% this year, up from the autumn forecast of a 0.4% decline.

In 2024, inflation will be lower than in 2023 and growth will be higher, he added.