From natural gas to coffee – import prices have not risen since the 1980 oil crisis. Now companies in this country want to adjust their sales prices – especially retailers.
German consumers must continue to expect sharp price increases in the coming year.
As the Federal Statistical Office announced on Friday, the prices for imported goods rose more sharply in October than they have been in 41 years. According to the Ifo Institute, “more companies in Germany want to raise their prices than ever before”. The institute therefore raised its inflation forecast for 2022.
The Munich economic researchers survey around 7000 companies every month about their plans for their sales prices. On balance, the index of price expectations rose to 45 points in November, “a new record since the beginning of the surveys” after German reunification in 1991. “Of course, this is not without consequences for consumer prices,” said the head of the Ifo economic forecast, Timo Wollmershäuser, on Friday.
Inflation rate remains high
“By the end of this year, the inflation rate is likely to rise to just under 5 percent and will initially be noticeably above 3 percent in the coming year,” said Wollmershäuser. “On average, we now expect an inflation rate of 3 percent this year and two and a half to 3 percent in 2022.” In September, the Ifo Institute had expected an inflation rate of 2 to 2.5 percent for 2022. The leading economic research institutes calculated 2.5 percent in their joint forecast in October.
Retailers in particular are planning price increases – here the balance rose to 65 points, followed by industry with 56 and construction with 44 points. “The reason for the rise in price expectations is the sharp rise in prices for primary products and raw materials that manufacturers and retailers now want to pass on to their customers,” the economic researchers explained.
The prices of imported goods rose in October compared to the previous year by 21.7 percent, as the Federal Statistical Office announced. That is the highest rate since the beginning of 1980 during the second oil crisis. Compared to the previous month, prices rose by 3.8 percent. Natural gas was almost three times as expensive in October and oil twice as expensive as a year ago. Steel, aluminum, wood and coffee were around 60 percent more expensive than a year ago.
If the supply bottlenecks continue, the price increases for primary products and raw materials could continue, explained the Ifo researchers. Should new collective agreements compensate for the high purchasing power losses of employees, this could cause a further rise in costs for companies.
Source From: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
