German Finance Minister Christian Lindner said there is a risk of a period of high inflation and low growth due to the war in Ukraine, which has led to an even greater increase in already high inflation, Reuters reported.

"Stagflation is a possible scenario," he told a conference of family-owned businesses in Berlin on Monday.

He said price pressures are best countered by eliminating subsidies that were previously given to support the economy, and Germany and Europe must return to fiscal discipline.

He added that Germany's constitutional debt brake, currently on hold, will come back into effect next year. This will mean reducing the level of new borrowing from 140 billion euros this year to 10 billion euros.