MNI BRIEF: Fewer German Companies Looking At Price Hikes - Ifo
MNI (LONDON) - Fewer German companies are looking to raise their prices, the Ifo Institute said Monday, with the latest price expectations index dropping to 13.8 in September, down from 16.1 points in August. This month's reading is the lowest since February 2021.
“Overall, the inflation rate in Germany in the coming months is likely to remain below the two percent mark targeted by the European Central Bank, as the economic crisis is reducing the scope for companies to raise their prices,” Timo Wollmershäuser, Head of Forecasts at ifo said. (see MNI INTERVIEW: VW Crisis Should Be Wake-Up Call - IWK's Demary)
Price expectations in the consumer-related sectors of the economy, in particular, play a role in the short-term development of consumer prices. They fell noticeably to 18.2 points, down from 25.0 points* in August. Both retailers and consumer-related service providers contributed to that. Price expectations also fell in the construction industry and among business-related service providers (including wholesalers) dropping to minus 0.3 and 17.9 respectively, down from 2.3 and 18.9 in August. The only increase was in manufacturing, rising slightly to 6.1, up from 5.1 in August.
German state and federal inflation data for September is due later Monday.