Opinion poll
Ifo expects inflation over 2 percent
The Munich economic researchers assume that inflation will not decrease relevant in the coming months. Service providers planned more price increases than industry.
In view of the pricing plans of the German economy, the Munich IFO Institute does not expect quick relaxation in inflation. In the coming months, it will also be around 2.5 percent and thus above the target of the European Central Bank, IFO said economic chief Timo Wollmerhäuser. According to the Federal Statistical Office, it rose to 2.6 percent in December, and it was 2.2 percent in 2024.
The basis of the IFO assessment is the monthly survey of the institute for the price plans of the economy. In January, these were practically unchanged at almost 19.6 points. This means that the proportion of those companies that want to increase prices are 19.6 percentage points higher than the proportion of companies that want to reduce prices. The amount of the planned change is not queried.
Above all, consumer service providers and retailers want to increase prices. For the service providers, the value of 19.9 rose to 27.5 points. In particular, hotels, travel agencies and service providers in the areas of art, entertainment and relaxation planned with rising prices, it said. In contrast, the indicator in the catering has dropped significantly.
Price pressure for food and drinks decreases
In retail, the value of 28.5 to 30.2 points rose. Above all, the retailers of toys, clothing, flowers and stationery want to increase their prices. In the case of food and drinks, electrical devices, in hardware stores and in car trading, the price pressure according to IfO, on the other hand. The bicycle trade even plans with falling prices.
The price expectations in the processing industry are significantly lower, where they sank minimally to 6.6 points. According to the survey, the energy -intensive industrial sectors in particular want to reduce their prices in the coming months. In the construction industry, the price expectations are 0.5 points, which is an increase compared to December, but companies that want to increase prices are roughly the scales with those who want to lower them.
dpa
Source: Stern
