The annual inflation rate in Germany could reach double digits by the fall, according to the country’s central bank.

Inflation outlook remains "extremely uncertain" due to the unclear situation in the commodity markets, the Bundesbank warned in a report released on Monday.

The annual inflation rate could hit 10 percent by the fall, the report said. Despite relief measures, including tax cuts on energy, inflation remained very high over the spring, the bank added.

Germany’s annual inflation rate saw a slight decline in July, coming down to 7.5 percent from 7.6 percent in June.