Prices in Germany will continue rising for months, warns institute
People in Germany should expect inflation to continue to rise in the coming months, according to a group of economic experts.
The Munich-based Ifo Institute said consumer prices in Germany will keep rising across the board.
According to the institute's monthly survey, all companies in the food trade sector plan to raise their prices.
Gas and electricity costs will also continue to increase, according to the economists - as will prices in the restaurant industry.
"The wave of inflation is therefore unlikely to abate yet, unfortunately," said Ifo economic head Timo Wollmershäuser, adding that gas and electricity in particular will be a major problem.
Inflation has already reached around 7.9 percent in Germany, and many households are struggling with the cost of living.
READ ALSO: How the cost of living is affecting people in Germany
For its economic forecasts, the Ifo Institute surveys several thousand companies every month and asks about their price expectations.
According to the survey, 100 percent of food retailers are planning price increases, and over 92 percent of drugstores.
For flowers and plant retailers, the figure was just under 90 percent, and for bicycles and stationery, it was well over 80 percent in each case.
In the catering trade, that figure stood at more than 87 percent, and at 62 percent for hotels.
Across industries, companies say they are struggling with high procurement and energy costs - some of which they are passing on to consumers through price increases.
Another factor for price increases is likely to be the minimum wage, which rose in October.
An Ifo survey published at the beginning of September showed that around 30 percent of companies have been directly affected because they paid some staff less than €12 per hour. According to the survey, 58.3 percent of them were planning price increases because of the minimum wage hike.
Comments
See Also
The Munich-based Ifo Institute said consumer prices in Germany will keep rising across the board.
According to the institute's monthly survey, all companies in the food trade sector plan to raise their prices.
Gas and electricity costs will also continue to increase, according to the economists - as will prices in the restaurant industry.
"The wave of inflation is therefore unlikely to abate yet, unfortunately," said Ifo economic head Timo Wollmershäuser, adding that gas and electricity in particular will be a major problem.
Inflation has already reached around 7.9 percent in Germany, and many households are struggling with the cost of living.
READ ALSO: How the cost of living is affecting people in Germany
For its economic forecasts, the Ifo Institute surveys several thousand companies every month and asks about their price expectations.
According to the survey, 100 percent of food retailers are planning price increases, and over 92 percent of drugstores.
For flowers and plant retailers, the figure was just under 90 percent, and for bicycles and stationery, it was well over 80 percent in each case.
In the catering trade, that figure stood at more than 87 percent, and at 62 percent for hotels.
Across industries, companies say they are struggling with high procurement and energy costs - some of which they are passing on to consumers through price increases.
Another factor for price increases is likely to be the minimum wage, which rose in October.
An Ifo survey published at the beginning of September showed that around 30 percent of companies have been directly affected because they paid some staff less than €12 per hour. According to the survey, 58.3 percent of them were planning price increases because of the minimum wage hike.
Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.
Please log in here to leave a comment.