According to a survey, more businesses in Germany are preparing price increases

Companies in Germany’s industrial, retail, and corporate services sectors are preparing for further price hikes, pushing inflation closer to the European Central Bank's 2% target, a survey released Tuesday shows.

The Ifo Institute’s price expectations index climbed to 15.9 in October, up from 14.1 in September.

"In the coming months, inflation is expected to rise slightly and align with the European Central Bank's 2% benchmark," said Ifo economist Sascha Moehrle.

Retail price increases are particularly influential in this trend, with the index for that sector rising to 21.4 from 19.1 points, according to Ifo.

Germany’s persistently high living costs have intensified calls for wage increases. A series of strikes by electrical engineers and metalworkers began Tuesday in response to these pressures.

After recently falling below the ECB target, analysts polled by Reuters predict German inflation will reach 2.1% in October, with preliminary data anticipated on Wednesday.

 

 

 

 

 

 

 

 

Paraphrasing text from "Reuters" all rights reserved by the original author.