Business
More companies planning price hikes in Germany, survey finds
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BERLIN (Reuters) – Companies in Germany’s industrial, retail and corporate services sectors are planning more price increases, bringing inflation on track to rise to the
BERLIN (Reuters) – Companies in Germany’s industrial, retail and corporate services sectors are planning more price increases, bringing inflation on track to rise to the European Central Bank’s 2% target, according to a survey published on Tuesday.
Ifo’s price expectations index grew to 15.9 in October from 14.1 points in September, the economic institute said.
In the coming months, the inflation rate should pick up again somewhat and reach the European Central Bank’s 2% mark,” Ifo’s Sascha Moehrle said in a statement.
Retailers’ plans to increase prices play a notable role in inflation, with the indicator rising in that sector to 21.4 from 19.1 points, Ifo said.
Stubbornly high living costs in Europe’s largest economy have fuelled demands for higher pay. On Tuesday, a wave of strikes got under way staged by electrical engineers and metalworkers.
After dipping below the ECB target, German inflation is seen rising again to 2.1% in October according to analysts polled by Reuters, with preliminary data expected on Wednesday.
(Reporting by Rachel More, editing by Kirsti Knolle)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured as an annual percentage change.
The European Central Bank (ECB) is the central bank for the euro and is responsible for monetary policy within the Eurozone, aiming to maintain price stability.
A price expectations index measures the anticipated changes in prices over a specific period, reflecting businesses' expectations about future inflation.
Corporate services refer to a range of support services provided to businesses, including administrative, financial, and operational assistance.
A strike is a work stoppage initiated by employees to express grievances or demand changes in working conditions, wages, or other employment terms.
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