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GERMAN DATA: IFO Price Expectations Fell in November

GERMAN DATA
Data BulletEurozoneGermanyCEEMEABulletMarketsFixed Income BulletsForeign Exchange Bullets

IFO price expectations for Germany fell in November, with decreasing values in consumer services which can be interpreted as a good sign re fading stickiness in that category:

  • "Price expectations in the consumer-related service sectors continued to decline, falling to 15.8 points, down from 18.5 points in October. This is the lowest level since March 2021 and only slightly higher than the average balance in the years 2005 to 2019 (14.6 points)" Note that that comes amid overall softer services momentum recently.
  • Overall, "ifo price expectations fell slightly to 15.6 points in November, down from 16.0 points in October. This is due primarily to the manufacturing industry and service providers."
  • However, details in other categories were mixed: "Price expectations in retail rose to 26.4 points, up from 21.9 points in October. Food and beverages in particular saw a sharp rise to 50.8 points, up from 39.7 points in October."
  • IFO expect the inflation rate to remain above 2% in the coming months on the back of a number of special effects towards the beginning of 2025. "The increase in the CO2 price for gasoline, heating oil and gas alone, as well as the price increase for the Deutschlandticket, postage and private health insurance, will raise inflation by 0.3 percentage points"
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IFO price expectations for Germany fell in November, with decreasing values in consumer services which can be interpreted as a good sign re fading stickiness in that category:

  • "Price expectations in the consumer-related service sectors continued to decline, falling to 15.8 points, down from 18.5 points in October. This is the lowest level since March 2021 and only slightly higher than the average balance in the years 2005 to 2019 (14.6 points)" Note that that comes amid overall softer services momentum recently.
  • Overall, "ifo price expectations fell slightly to 15.6 points in November, down from 16.0 points in October. This is due primarily to the manufacturing industry and service providers."
  • However, details in other categories were mixed: "Price expectations in retail rose to 26.4 points, up from 21.9 points in October. Food and beverages in particular saw a sharp rise to 50.8 points, up from 39.7 points in October."
  • IFO expect the inflation rate to remain above 2% in the coming months on the back of a number of special effects towards the beginning of 2025. "The increase in the CO2 price for gasoline, heating oil and gas alone, as well as the price increase for the Deutschlandticket, postage and private health insurance, will raise inflation by 0.3 percentage points"