Inflation on the upswing: Companies are planning drastic price increases!

Inflation on the upswing: Companies are planning drastic price increases!

- German consumers have to adjust to price increases again! While inflation was 8.6 percent two years ago, it has now fallen to 1.6 percent. But economic experts warn: an increase is in sight!

In the German economy it is bubbling! Retailers, industrial companies and even service providers are on the mat to increase their prices. The current IFO price expectations reached a new high in October: proud 15.9 points-that was 14.1 points in September. "We expect that the inflation rate will be attracted again in the coming months and possibly reaching the magical two percent mark of the European Central Bank", predicts Sascha Möhrle, the IFO economy expert.

The truth

The increase in the consumer areas close to consumes is particularly noticeable. In retail, the price expectations rose from 19.1 to 21.4 points. Conversely, the service providers prepare for a decline in their price expectations from 22 to 18.5 points. Möhrle explains: "The service providers are in the focus of monetary authorities due to increased wages and strong price increases with almost 4 percent." In the meantime, construction companies expect that they have to reduce their prices.

The points of the IFO price expectations show how much percent of the companies plan to increase their prices. So this is not about the exact amounts of the planned price increases, but about the general trend - and it is clear: the Germans have to dig deeper again!