Strong inflation: even more companies want to raise prices

Status: 05.10.2022 10:06 am

An end to the high inflation is not in sight for the time being. According to a study by the ifo Institute, more companies are planning to raise prices in the coming months. The trend is particularly visible in food.

The Munich economic research institute ifo assumes that prices in Germany will continue to rise. The barometer for price expectations for the coming months rose to 53.5 points in September, after 48.1 points in August, the ifo announced today in its monthly business survey. In the food trade, for example, all the companies surveyed are planning to increase prices.

According to the economists, gas and electricity will also continue to rise, as will prices in the catering industry. “Unfortunately, the inflation wave should not abate yet,” said Timo Wollmershäuser, ifo’s head of economics. “There is still a lot in the price pipeline, especially for gas and electricity.” In September inflation reached 10.0 percent, the highest level in decades.

Drugstore items and clothing are getting more expensive

The ifo Institute surveys several thousand companies every month for its economic forecasts. This includes price expectations. As a result, in particular, there is a further increase in food: here the established value reached 100 points, after 96.9 in August. Almost all the companies surveyed want to increase the price in this area.

In other trade, price increases are mainly targeted by sellers of drugstore items (92.3 points), flowers, plants and pet supplies (89.6), toys (89.0), bicycles (84.4) and stationery (83.8). ). In the industry, clothing manufacturers are far ahead (83.5 points), followed by glass, ceramic and stone manufacturers (77.3), electrical equipment manufacturers (75.5) and printing (70.3). The figures are also very high in gastronomy (87.4), building maintenance (78.0) and hotels (62.4).

The points indicate what percentage of the companies on balance want to increase their prices. The balance is calculated by subtracting the percentage of companies that want to increase their prices from the percentage of companies that want to decrease their prices. If all the surveyed companies plan to increase their prices, the balance is plus 100 points. If everyone wants to lower their prices, that’s minus 100.

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