The central bank said: “In particular, the ongoing high wage pressures could make it harder to press ahead with curbing inflation.”
The Bank of England has recently issued similar warnings about the UK, saying record wage growth will make it more difficult to depress consumer spending and get inflation back to target.
In a glimpse of hope for the economy, however, German factory gate prices dropped far faster than expected in July.
Prices tumbled by 1.1pc last month, new figures showed, which was far more than the 0.2pc decline that analysts had forecast.
The sharp drop, which was the biggest since 2009, was driven by tumbling energy prices and suggests that inflation in Germany could slow faster than expected.
Concerns about the health of the German economy have been mounting as it struggles to adapt to the loss of cheap Russian oil and gas to fuel its dominant manufacturing sector.
Both the International Monetary Fund and the OECD have predicted it will be the worst-performing major advanced economy in 2023.
Italy, the European Union’s third-largest national economy, has also been teetering on the brink of recession after shrinking by 0.3pc in the three months ending in June.
