According to the Ifo economic institute, an increasing percentage of German companies are preparing to raise their prices, implying that inflation is unlikely to slow.
Ifo reported that its pricing expectations index for the coming months was 53.5 points in September, up from 48.1 points in August.
‘Unfortunately, this suggests that the inflationary surge is not about to abate,’ says Timo Wollmershaeuser, ifo’s head of predictions.
In September, German consumer prices (HICP), which have been harmonised to be comparable with inflation data from other European Union nations, grew by 10.9% year on year. Inflation has already reached its highest level in more than a quarter-century.