According to an ifo survey, significantly more companies in Germany want to increase their prices. The corresponding barometer rose to 25.3 points in March, reaching its highest level in three years, as the ifo Institute in Munich announced. In February it was still at 20.3 points. “Price pressure in Germany is increasing noticeably again,” said ifo expert Klaus Wohlrabe. “High energy prices are likely to increase inflation in the coming months.”
It is the highest value since March 2023. The reason for this is the attacks on the energy infrastructure in the Gulf states and the Closure of the Strait of Hormuz. This causes prices for crude oil, fuel, gas and electricity to rise.
Significant increase in inflation rate expected
Companies are planning price increases, particularly in industry: here the indicator rose from 13 to 20 points. Companies in the construction industry also significantly increased their price expectations. Also so-called consumer-related service providerssuch as catering, retail and health, increased their price expectations significantly. “Companies are increasingly passing on increasing costs,” said Wohlrabe. “Energy prices will also have an impact on goods and services through higher production and transport costs.”
The Inflation rate This is likely to increase significantly in the coming months. In February it was compared to the previous year still at 1.9 percent and thus within reach of the targeted two percent target. The Bundesbank expects an inflation rate that will “increase significantly toward three percent in the near future.” An initial estimate of inflation last month will be presented by the Federal Statistical Office on Monday.