Inflation is Returning! More and More Firms in Germany Plan to Increase Prices

The Ifo price expectations are a reliable early indicator of sector-specific price development. In addition, the Ifo indicator is able to forecast the core rate of German inflation more accurately than a simple reference model. According to the most recent survey results of the Ifo Business Survey, more and more companies intend to raise their prices in the future. For this reason, the recent rise in inflation is likely to remain high in both the upstream manufacturing stages as well as at the final consumption levels in the coming months. Inflation in Germany is returning.