The number of companies in Germany that want to increase their sales prices in the next three months is falling. The corresponding barometer for price expectations fell in April by 5.6 to 27.1 points and thus for the seventh month in a row, as the Munich Ifo Institute announced on Thursday in its company survey. “The wave of price increases should have already passed its apex,” said Ifo economic chief Timo Wollmershäuser.
According to the information, the focus of the price increases will remain on retail and consumer-related service providers. Although the barometers also fell here, they remained at an above-average level of 43.2 and 36.3 points. “Therefore, inflation should only drop very slowly in the coming months,” expects Wollmershäuser. Above all, the so-called core rate, i.e. the increase in consumer prices without energy, will remain high.
According to economists’ forecasts, inflationary pressure eased only minimally in April, which is now drawing to a close. Consumer prices are likely to have risen by an average of 7.3 percent compared to the same month last year, predicted the economists from 21 banks surveyed by the Reuters news agency on average. That would be the lowest level since August 2022.
In some retail areas, price expectations even rose again.
Ifo Institute
In March, the inflation rate had fallen significantly to 7.4 percent, after having been 8.7 percent in both January and February. On Friday, the Federal Statistical Office intends to present a first official estimate for inflation in April.
“In some areas of retail, price expectations even rose again,” said the Ifo Institute. These include food and beverages (from 64.8 to 69.9 points), computers and software (from 22.3 to 57.9 points), bicycles (from 22.9 to 30 points) and information and communication technology (from 33.3 to 37.3).
Restaurant owners in particular (from 46.8 to 36.6 points), DIY stores (from 53.1 to 33.4 points), car dealers (from 27.6 to 16.3 points) and retailers in the consumer electronics sector ( from 28.0 to 8.9 points).
Not too many price increases are planned in the manufacturing industry either. In the construction industry, the corresponding barometer fell from 6.6 to 5.0 points, in manufacturing from 17.7 to 12.4 points. (Reuters)
