German companies are looking to increase their prices 'on a large scale', the ifo Institute has found, with inflation set to rise further over the coming months.
The food industry in particular is under increased pressure, the ifo found, with price expectations for the food sector at 96.8 points, down from 99.4 points in July.
For the economy as a whole, price expectations for the coming months stood at 47.5 points in August, down slightly from 47.6 points in July.
'Wave Of Inflation'
“Unfortunately, an end to the wave of inflation is not in sight,” commented Timo Wollmershäuser, head of forecasts at ifo.
“So far, energy suppliers have borne the brunt of the sharp increases in market prices for electricity and natural gas, passing on only a small proportion to their customers. This is likely to change in the coming months, leading to double-digit inflation rates."
This in turn means that consumers are likely to "curtail their consumption", with overall economic output set to contract in the second half of the year.
Clothing manufacturers are also planning to raise their prices, the study found, with the indicator for this sector rising to 89.2 points, up from 84.6 points in July.
Numbers are also high in hospitality (76.4 points), building services (76.5 points), footwear and leather manufacturers (71.2 points), electrical equipment manufacturers (71.3 points), and travel agencies (69.3 points).
The ifo's points structure indicates the percentage of companies that intend to increase prices on balance. The balance is obtained by subtracting the percentage of companies that want to lower their prices from the percentage of those that want to raise their prices. If all companies surveyed intended to increase their prices, the balance would be plus 100 points.
© 2022 European Supermarket Magazine – your source for the latest A Brands news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
