Companies in Germany plan to increase prices less frequently. The Ifo Institute expects inflation to fall below two percent again soon.
The Ifo Institute expects inflation to fall below two percent in August. This is based on a recent survey of companies on their price plans, according to which slightly fewer companies, especially in industry and the consumer-related sector, want to increase their prices. “The inflation rate is therefore likely to continue its slow decline and fall below the two percent mark in August for the first time since March 2021,” says Ifo economic chief Timo Wollmershäuser. In May, the nationwide inflation rate was 2.4 percent. The Federal Statistical Office announced the estimate for June on Monday.
According to the survey, price increases are less likely to occur in the retail sector, particularly in the clothing and electrical household appliances sectors – as well as in the arts, entertainment and recreation sectors. In consumer electronics and bicycle retail, the signs even point to falling prices.
However, there are also consumer-related sectors in which more companies want to increase prices again. According to Ifo, these include the food and beverage retail trade, the car trade, and the catering and hotel industries.
Source: Stern
