The proportion of companies planning to raise prices in Germany further decreased
In August, fewer German companies planned price increases in the next three months than a month earlier, according to data from a survey published on Tuesday by the German economic research institute ifo.
According to data published by ifo (ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München e.V.) on Tuesday, price expectations for the entire economy in Germany fell to 14.7 points in August after 16.3 points in July. This was the eleventh month in a row showing a decline.
The indicator shows how many companies plan to raise prices in the next three months. It is calculated by subtracting the percentage of companies planning to cut prices from the percentage of companies planning to raise prices. ifo does not ask about the extent of the planned price changes.
“There is a long and difficult road to reducing inflation”
– said Timo Wollmershäuser, ifo’s chief economist. Price expectations in the service sector fell only slightly, for example, the price expectations index changed from 47.8 points to 46.6 points in hospitality, and from 34.9 points to 33.5 points in retail trade.
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