How stable is the trend of falling inflation rates? Recently there were doubts about this. Now economic researchers are presenting data on companies’ price expectations.
The Munich-based Ifo Institute for Economic Research expects inflation rates to be slightly lower in the foreseeable future. “Overall, the inflation rate in the coming months is likely to remain below the two percent mark that the European Central Bank (ECB) is aiming for,” said Ifo economic chief Timo Wollmershäuser. “Energy in particular is significantly cheaper for consumers than it was a year ago.”
The Ifo Institute published data on the latest price expectations of companies in Germany on Thursday. According to the data, fewer companies intended to raise their prices in August than in the previous month. The corresponding index fell from 17.6 to 16.3 points. According to the institute, this development was mainly due to industry and business-related service providers. In contrast, slightly more companies in consumer-related sectors and in construction wanted to raise their prices than in the previous month.
The Federal Statistical Office will announce the first estimate for the inflation rate in August in the afternoon (2 p.m.). This figure usually corresponds to the final value announced later. In July, the series of gradually falling inflation rates did not continue. In that month, consumer prices rose by 2.3 percent compared to the same month last year – after 2.2 percent in June and 2.4 percent in May.
Source: Stern
