Germany's inflation rate could rise by more than 10% this fall - the highest in seven decades - amid the country's energy crisis, central bank governor Joachim Nagel said, according to Business Insider.

Nagel's comments come immediately after Russian state gas giant Gazprom announced an unscheduled three-day shutdown of the key Nord Stream 1 natural gas pipeline that brings natural gas to Europe. Gazprom said the pipeline needed maintenance and would be closed from 31 August to 2 September.

This has driven up natural gas prices as Gazprom has already cut gas flows through the pipeline to just 20% of its capacity, citing technical problems.

According to the statistical office of the country, the German economy in the second quarter of 2023 will be in stagnation. Meanwhile, according to the statistical office, inflation rose to a 40-year high of 7.5% in July compared to last year, mainly due to high energy prices.

In June, Germany's central bank forecast 2023 inflation at 4.5%, but Nagel said price increases were likely to average more than 6%.

The energy crisis in Germany is exacerbated by the ongoing summer heat that has dried up the Rhine, disrupting a key transport route for delivering energy supplies.

German industry leaders have warned of serious economic hardship if Russian gas supplies are completely cut off. In order to save energy, Europe's largest economy has already begun turning off heating and electricity.