Stubborn inflation will remain at a very high level, German central bank president says

Joachim Nagel, president of Germany's Bundesbank and one of the ECB's more hawkish members, told CNBC's Annette Weisbach Wednesday that consumer price rises are set to remain stubbornly high.

"It looks like, for at least the next couple of months, inflation will stay on very high levels, expect maybe for the second half that inflation might come down to a certain extent," he said Wednesday.

"But still, what we expect for this year for Germany is an average inflation rate of around 6 to 7%."

Markets have been pondering the prospect of higher interest rates for longer in the euro zone, after data released this week showed higher-than-expected inflation numbers from France and Spain.

European bond yields rose on Tuesday and then again on Wednesday on the back of the latest data. The yield on the 10-year German bund — seen as the main benchmark in the region — rose to its highest level since 2011 on Wednesday.

Goldman Sachs said Wednesday that it was increasing its expectations for peak interest rate hikes in the euro area. The investment bank now projects another 50 basis point rise in May, rather than an increase of just 25 basis points at the time.

Speaking to CNBC, Nagel also said that "the journey is not over" and that the central bank will "have to do more" to reduce the balance sheet.

The ECB is this month starting to sell bonds at a pace of 15 billion euros a month until June. Reducing the balance sheet is also a measure to bring down inflation in the bloc.

The Eurostat, the region's statistics office, is releasing new inflation figures Thursday.