In view of the pricing plans of the German economy, the Munich IFO Institute does not expect quick relaxation in inflation. In the coming months, it will also be around 2.5 percent and thus above the target of the European Central Bank, IFO said economic chief Timo Wollmerhäuser. According to the Federal Statistical Office, it rose to 2.6 percent in December, and it was 2.2 percent in 2024.
The basis of the IFO assessment is the monthly survey of the institute for the price plans of the economy. In January, these were practically unchanged at almost 19.6 points. This means that the proportion of those companies that want to increase prices are 19.6 percentage points higher than the proportion of companies that want to reduce prices. The amount of the planned change is not queried.
Consumer service providers in particular want to increase prices: inside and retail. For the service providers, the value of 19.9 rose to 27.5 points. In retail, the value of 28.5 to 30.2 points rose. The retailers in particular: inside of toys, clothing, flowers and stationery want to increase their prices.