Inflation in Germany may well stay in double digits next year despite the government's efforts to keep energy prices in check, the Bundesbank said.

Consumer prices in Germany rose 11.6 percent last month, the fastest pace since the early 1950s, Berlin is trying to rein in rising energy bills that reflect an explosion in market prices for natural gas after the war in Ukraine.

The Bundesbank said the impact of this so-called brake on gas prices may not manifest itself immediately and will be temporary in any case.

The inflation rate may remain double-digit even after the end of the year, the German central bank said in its monthly report.

The first part of the government's plan to pay gas bills in December will bring relief to consumers, but may not register in the official inflation calculation.

The second, more substantial part of the plan, which would subsidize 80 percent of residential and small business gas consumption, could reduce inflation by 1 percentage point.

The Bundesbank, which has been an ardent supporter of the European Central Bank's efforts to curb inflation with steady interest rate hikes, has received some relief from recent wage agreements in the German chemical and steel sectors.

From a macroeconomic perspective, it is easier to return to lower wage increases when the temporary components expire, the Bundesbank said.

However, he warned that union demands, such as the 10.5 percent wage increase put forward for public sector workers, were exceptionally high.

The Bundesbank also reiterated its long-standing forecast of a recession in the last quarter of this year and the first quarter of 2023.