IFO: Fewer German companies plan to raise prices

The German Economic Research Institute (IFO) announced that the number of German companies that want to increase their prices in the next 3 months has decreased recently due to the high increase in costs such as power or raw materials.

IFO has published the results of the German Business Survey on the price expectations of companies.

Accordingly, in December, 40.3 percent of companies in Germany stated that they want to increase their prices substantially in the next 3 months. In November, this rate was recorded as 46.2 percent.

The said ratio decreased from 53.3 points in November to 42 points in December in the manufacturing division. In the service sector, it decreased from 41.4 points to 38.1 points.

It was noted that the biggest price increases were planned by the food retailers.

Timo Wollmershauser, Director of IFO Research and Economic Assumption, said: “This means that increases in producer and consumer prices will gradually slow down in the coming months. However, inflation rates will remain high.” used the terms.

On the other hand, annual inflation in Germany, which was 10 percent in November 2022, declined to 8.6 percent in December 2022 due to the effect of the payment of heating bills by the state. In 2022, average inflation reached 7.9 percent, its highest level since 1951.