More and more companies want to increase their prices in the next three months. This is indicated by the Ifo price expectations published on Wednesday, which reached a high of 54.6 points. Compared to February, the index rose by 7 points.
“This means that the inflation rate is likely to rise to well over 5 percent this year,” said Ifo expert Timo Wollmershäuser. “The last time that happened in Germany was more than 40 years ago, when the inflation rate rose to 6.3 percent after the second oil price crisis in 1981 climbed.”
According to the Ifo, the price increases are to be expected in particular in the consumer-related area. In food retail, for example, the value is 94. This means that the vast majority of survey participants from this sector are planning price increases. The value is calculated from the proportion of companies that want to raise prices minus the proportion that want to lower prices. However, it is still adjusted for seasonal effects.
“Russia’s attack on Ukraine is not only driving up energy costs, but also the prices of many agricultural commodities,” explained Wollmershäuser. The Ifo does not ask how high the price increases are. (dpa)