According to the Ifo Institute, significantly more companies in Germany want to increase their prices because of the consequences of the Iran war. The corresponding indicator climbed five points to its highest value since March 2023, as the Ifo Institute in Munich announced. “Price pressure in Germany is increasing noticeably again,” said Ifo expert Klaus Wohlrabe. “High energy prices are likely to increase inflation in the coming months.”
The USA and Israel have been attacking Iran for weeks, and the leadership in Tehran is in turn attacking the energy infrastructure in the Gulf states where US soldiers are stationed. In addition, the Strait of Hormuz, through which a large part of the world’s raw material transports is shipped, is de facto closed. As a result, prices for crude oil, fuel, gas and electricity are rising.
“Companies are increasingly passing on rising costs,” said Wohlrabe. “Energy prices will also have an impact on goods and services through higher production and transport costs.”
According to Ifo, price expectations are rising particularly sharply in industry and the construction sector. Consumer-related service providers, such as catering, retail or health, also increased their price expectations significantly. “The results show that price pressure is increasing again across many industries,” emphasized the Ifo Institute.
