Fewer Companies in Germany Expect Price Increases

In Germany, fewer companies are expecting prices to rise in the months ahead. Price expectations fell to 15.3 points in October, down from 15.7 points* in September. The most noticeable drop was in consumer-related industries. Among food retailers, the balance fell from 53.0 points* to 41.6 points, among other retailers from 31.8 points* to 28.3 points, and among consumer-related service providers from 35.1 points* to 29.3 points. “This means that consumer prices will still continue to rise. However, the pace will ease off and with it inflation,” says Timo Wollmershäuser, Head of Forecasts at ifo.

In manufacturing, slightly more companies are expecting price increases than in the previous month. That indicator rose a little from 4.6 points to 6.2 points. While energy-intensive industries expect to continue to lower prices (-19.5 points, up from -19.9 points*), the remaining manufacturers expect to raise prices more quickly again (+12.4 points, up from +9.9 points*). In construction, the downward price trend slowed somewhat, with price expectations rising from -12.1 points* to -9.9 points.

The points for the ifo price expectations indicate the%age of companies that intend to increase prices on balance. The balance is obtained by subtracting the%age of companies that want to lower their prices from the%age of those that want to raise their prices. If all the companies surveyed intended to increase their prices, the balance would be +100 points. If they all wanted to lower their prices, it would be -100. The balance was seasonally adjusted. The ifo Institute does not ask about the amount of the planned price change.

* Seasonally adjusted