More and more companies want to raise prices - Ifo Institute determines maximum value

Created: 03/30/2022Updated: 03/30/2022 11:19 am

The ifo Institute assumes further price increases in Germany - and has determined a maximum value.

(Iconic image) © Oliver Berg/dpa

The ifo Institute assumes further price increases in Germany - and has determined a maximum value.

One area is particularly badly affected.

Munich - More and more companies want to increase their prices in the next three months.

This is indicated by the price expectations published on Wednesday by the Institute for Economic Research* (Ifo Institute) in Munich, which reached a high of 54.6 points.

Compared to February, the index rose by 7 points.

ifo Institute expects price increases, especially in the consumer-related area

"This means that the inflation rate is likely to rise to well over five percent this year," said Ifo expert Timo Wollmershäuser.

"The last time that happened in Germany was more than 40 years ago, when the inflation rate climbed to 6.3 percent after the second oil price crisis in 1981."

According to the Ifo, the price increases are to be expected particularly in the consumer-related area.

In food retail, for example, the value is 94. This means that the vast majority of survey participants from this sector are planning price increases.

The value is calculated from the proportion of companies that want to raise prices minus the proportion that want to lower prices.

However, it is still adjusted for seasonal effects.

War in Ukraine drives up energy costs and commodity prices

"Russia's attack on Ukraine is not only driving up energy costs, but also the prices of many agricultural commodities," explained Wollmershäuser.

According to the Ifo, a particularly large number of price increases are also to be expected in other retail trade, consumer-related services, wholesale trade and industry.

The Ifo Institute does not ask how high the price increases are.