Consumer prices
Ifo: Retail and industry are planning higher prices
Two years ago, Germans had to cope with 8.6 percent inflation, but after interest rate increases it fell to 1.6 percent. Economic researchers expect a slight increase soon.
Retailers, industrial companies, business-related service providers and wholesalers are increasingly planning price increases. Ifo price expectations rose to 15.9 points in October, after 14.1 in September. “In the coming months, the inflation rate is likely to increase again and reach the European Central Bank’s two percent mark,” says ifo economic expert Sascha Möhrle.
The consumer-related sectors of the economy play a particular role in inflation. In retail, price expectations rose from 19.1 to 21.4 points. In the consumer-related service sectors, however, they fell from 22 to 18.5 points. “Because of their high wage share in total costs, service providers are particularly in the focus of the monetary authorities, because inflation here is the highest at almost 4 percent due to the strong wage increases,” says Möhrle. Construction companies are expecting to have to lower their prices.
The points in the ifo price expectations indicate what percentage of companies want to increase their prices on balance. The institute does not ask about the amount of the planned price change.
dpa
Source: Stern
