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According to the Ifo Institute, inflation will continue for a long time

2022-10-05T07:08:28.831Z

One hundred percent of grocers want to raise prices, and things are hardly looking any better in drugstores or restaurants: With a new survey, the Ifo Institute gives little hope that inflation will subside anytime soon.



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Fruit display in a supermarket in Munich

Photo: Wolfgang Maria Weber / IMAGO

According to the Ifo Institute, prices in Germany will continue to rise almost across the board in the coming months.

According to the institute's monthly company survey, all companies in the food trade want to raise prices across the board.

According to the Munich economists, gas and electricity will also continue to rise, as will prices in the catering trade.

"Unfortunately, the wave of inflation shouldn't abate yet," said Ifo economic chief Timo Wollmershäuser.

In the case of gas and electricity in particular, “there is still a lot in the price pipeline”.

The Ifo Institute surveys several thousand companies every month for its economic forecasts, which also includes price expectations.

Accordingly, on balance 100 percent of groceries are planning price increases and over 92 percent of drugstores.

For flowers and plants it was almost 90 percent, for bicycles and stationery it was well over 80 percent.

In gastronomy it was more than 87 percent, in hotels a good 62 percent.

The situation is similar in some branches of industry such as the clothing or electronics industry.

The number of companies planning price increases in the coming months has recently risen again.

According to the Ifo, price expectations for the economy as a whole rose to 53.5 points in September, after 48.1 points in August.

The balance is calculated by subtracting the percentage of companies that want to raise their prices from the percentage that want to lower them.

Minimum wage should also drive up prices

Across all industries, companies are currently struggling with high procurement and energy costs - some of which they pass on to consumers in the form of price increases.

Another factor is likely to be the minimum wage, which increased in October.

An Ifo survey published at the beginning of September showed that a good 30 percent of companies are directly affected because some of them are currently paying less than twelve euros an hour.

58.3 percent of them planned price increases.

dab/dpa/AFP

Source: spiegel

All business articles on 2022-10-05

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