In September, a slightly higher number of companies planned to increase their prices. According to the information released by the Ifo Institute on Wednesday, the Ifo price expectations rose modestly to 22.7 points, up from 21.4 in August.
This increase suggests that higher energy costs are increasingly being transferred onto consumer sale prices. Timo Wollmershäuser, the Ifo Chief Economist, stated that with the visible price hikes in fuel and heating oil, energy providers are likely set to increase electricity and gas prices this winter. He added that price pressure across many goods and services will continue to mount, forecasting that the inflation rate will climb above three percent in the coming months.
These price pressures have been heightened by a significant surge in crude oil prices, particularly following the blockage of the Bab al-Mandab strait. Furthermore, gas and electricity prices reached their highest levels since late 2022 in mid-September.
Price expectations rose across most economic sectors in September. The boost was particularly noticeable among energy-intensive industrial companies, where the index rose sharply to 24.8 points from 19.5 in August. Non-energy-intensive companies also saw an uptick, with the index increasing to 20.4 points (up from 19.2). Meanwhile, wholesale and retail trade experienced a robust rise in expectations, jumping from 30.0 to 35.6 points. Conversely, service providers were less likely to anticipate price increases, with the index declining from 20.9 to 19.8.
