Consumer sectors in Germany expect lower price hikes: ifo Institute

In manufacturing, slightly more companies are expecting price increases than in the previous month. That indicator rose a little from 4.6 points to 6.2 points. While energy-intensive industries expect to continue to lower prices at -19.5 points, up from -19.9 points, the remaining manufacturers expect to raise prices more quickly again at 12.4 points, up from 9.9 points, ifo Institute said in a press releasse.

The points for the ifo price expectations indicate the percentage of companies that intend to increase prices on balance. The balance is obtained by subtracting the percentage of companies that want to lower their prices from the percentage of those that want to raise their prices. If all the companies surveyed intended to increase their prices, the balance would be 100 points. If they all wanted to lower their prices, it would be -100. The balance was seasonally adjusted.

“This means that consumer prices will still continue to rise. However, the pace will ease off and with it inflation,” said Timo Wollmershauser, head of forecasts at ifo.

ALCHEMPro News Desk (NB)