BERLIN (Reuters] – Germany’s government has raised its forecast of inflation for the year to 6.1% because of the effect on the war in Ukraine. This is an increase from the 3.3% forecasted in January.

German annual inflation reached its highest point in over 40 years during March, as oil prices soared after Russia invaded Ukraine. It is likely that it will remain at this level through April.

Berlin will present its spring economic outlooks Wednesday. The document indicated that consumer price growth is expected to ease to 2.8% by 2023.

The government’s January projections for consumer spending showed a 9.7% increase in consumption, which is 0.6 percentage point more than it had predicted. According to the document, consumers will continue to grow slower at a rate 4.8% by 2023.

According to Reuters, a source told Reuters that Friday’s spring forecasts showed the government cutting its growth projections for Europe’s largest economy to 2.2% (from 3.6%) and growth increasing slightly to 2.5% by 2023.

Unexpectedly, German business morale rose slightly in April after a significant drop in March. Companies were less pessimistic as the economy had shown resilience following initial shock from war in Ukraine.