Cost pressures in corporate Germany appear to be easing, with fewer companies planning price increases during the coming months.
(Bloomberg) — Cost pressures in corporate Germany appear to be easing, with fewer companies planning price increases during the coming months.
Price expectations for the whole economy fell to 40.3 points in December from 46.2 points the previous month, according to a survey by the Ifo Institute published Tuesday.
Manufacturing and construction saw the biggest declines, while fewer firms in the trade and services sectors also expect to raise prices. Food retailers plan the largest increases, though expectations dropped to 83.7 points from 94.7 points.
Despite cost pressures easing, inflation will probably stay elevated, according to the institute.
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“Increases in producer and consumer prices are likely to gradually slow down in the months ahead,” said Timo Wollmershäuser, Ifo’s head of forecasts. “Inflation rates will, however, remain high.”
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