Ifo says more German companies want to raise prices

BERLIN (Reuters) – Germany’s Ifo price expectations index rose to the highest level since April 2023 in December, with all economic sectors contributing to the increase, the Ifo Economic Institute said on Thursday.

The index rose to 19.7 points in December, up from 15.8 points in November. Ifo Price Forecast Score indicates the percentage of companies that intend to increase prices.

“In the coming months, the inflation rate is expected to stabilize at around 2.5%, and thus above the ECB target,” said Timo Wolmershauser, head of forecasting at Ifo.

Price expectations rose for consumer-related service providers, in manufacturing and among business-related service providers in December.