According to the Ifo Institute, the war in Ukraine will probably continue to fuel inflation in Germany. The reason for this is the threat of further price increases for gas and oil. That said Timo Wollmershäuser, head of the Ifo economic forecasts, on Friday in Munich. "A five before the decimal point of the inflation rate in 2022 as a whole is just more likely than a three."
Even before the Russian invasion of Ukraine, according to the institute’s regular surveys in the German economy, many companies wanted to raise their prices. This will therefore have a direct impact on consumers: according to Ifo, almost two-thirds of retailers are planning price increases on balance, and more than 85 percent of grocers. On average across all sectors, this index rose to a high of 47.1 points.
The Munich economists ask several thousand companies every month whether they intend to raise or lower prices in the next three months. The amount of the planned price changes is not asked. (dpa)