The Ifo indicator for price expectations fell from 30.0 to 26.4 points in June. This means fewer companies plan to raise their prices. Ifo’s head of economic forecasting, Timo Wollmershäuser, sees this as a sign that the big wave of price increases may be over – apart from the end of the fuel discount in July.
Price expectations fell particularly sharply among energy-intensive companies: the value dropped from 41.2 to 30.2 points. There was also a relaxation among food manufacturers, with the indicator falling from 19.6 to 12.7 points. However, in the food retail sector, price pressure remained high at 48.5 points.
Wollmershäuser warned against premature all-clear: producer and consumer prices are likely to continue rising in the coming months. Price expectations are still significantly above the average of 18.3 points for the years 2023 to 2025. The index is based on an Ifo survey and compares the share of companies planning to raise prices with those planning to cut them.
Source: www.tagesspiegel.de
