Despite an inflation rate of ten percent, the prices of food, building materials and clothing are likely to continue to rise in the coming months. Half of all companies are planning increases, reports the IFO Institute. Only in one industry can falling prices be expected.
German consumers must be prepared for further price increases in the coming months. In October, every second company planned to ask customers to pay more in the near future, as the Munich IFO Institute announced in its monthly survey. The corresponding barometer for price expectations for the coming months fell only slightly for the economy as a whole to 51.5 points, after 53.8 in September.
"The wave of inflation hasn't broken yet," said IFO economic chief Timo Wollmershäuser. "Above all, the high energy costs have not yet been fully passed on to consumers." Grocery retailers are still planning price increases almost across the board. The barometer there fell to 96.7 points, after 100.0 in the previous month.
According to the survey, the majority of sellers of home textiles and carpets (94.6), stationery (92.5), DIY and DIY stores (85.6) and sellers of consumer electronics (85.4) want more to demand. "Only in the trade in used cars are slightly lower prices to be expected for the first time since March 2021," it said. The corresponding expectations there fell to minus 5.8 from plus 25.7 in the previous month.
According to the IFO, the majority of companies in the manufacturing sector also want to raise their prices. However, their share has decreased compared to the previous month. In the chemical industry, the barometer fell from 52.3 to 33.1 points, in the paper industry from 65.3 to 27.0 points. Manufacturers of clothing (83.5), glassware and ceramics (72.1) and food and animal feed (70.6) have particularly high price expectations. Price expectations are also very high in gastronomy (80.9).
The inflation rate in Germany was 10 percent in September, the highest level since 1951. According to a survey of economists by the Reuters news agency, it is likely to rise to 10.1 percent in October. The Federal Statistical Office wants to publish an initial estimate. The points in the IFO price expectations indicate what percentage of companies want to increase their prices on balance. If all respondents intended to increase their prices, the balance would be plus 100 points. The institute does not ask for the amount of the planned price change.
