The Ifo price expectations index in Germany rose to its highest level since April 2023 in December, with all economic sectors contributing to the increase, the economic institute Ifo said today.
The index rose to 19.7 points in December, up from 15.8 points in November. The points for the Ifo price expectations indicate the percentage of companies that intend to increase prices.
"In the coming months, the inflation rate is expected to level off at around 2.5%, hence above the European Central Bank's target," said Timo Wollmershaeuser, head of forecasts at Ifo.
Price expectations for consumer-related service providers, in manufacturing and among business-related service providers rose in December.
Meanwhile, German inflation eased slightly in December to 2.8%, the federal statistics office said today, confirming preliminary data.
German consumer prices, harmonised to compare with other European Union countries, had risen by 2.9% year-on-year in November.
