According to the Ifo, prices for consumer-related services are likely to rise more slowly.
(Photo: dpa)
Berlin The price expectations of companies fell in July for the third time in a row and, according to the Ifo Institute, indicate that inflation is easing. According to the latest survey by the Munich researchers, the proportion of companies surveyed that intend to raise their prices in the next three months has continued to decrease.
The indicator fell to 47.4 points from 52.9 previously, as the institute further announced on Thursday: “Prices are likely to continue to rise, but the pace will slow down. Inflation has probably reached its peak and will gradually decline over the course of the second half of the year,” said Ifo economics chief Timo Wollmershäuser.
According to the expert, the price expectations of companies are usually reflected in consumer prices with a few months lag. Price expectations have fallen noticeably, especially in those sectors of the economy whose production is upstream of consumption.
These include construction and industry. But according to the Ifo, prices are also likely to rise more slowly in consumer-related services (hospitality, leisure, culture, entertainment). Only in the food retail sector is there still no end in sight to the noticeable rise in prices. As in the previous months, all retailers surveyed by the Ifo stated that they wanted to raise their prices.
Top jobs of the day
Find the best jobs now and
be notified by email.
The Ifo published the survey data a few hours before the upcoming inflation figures from the Federal Statistical Office. Experts polled by Reuters expect consumer prices to have risen by 7.4 percent in July. This means that the upward pressure on prices would no longer be quite as strong as in the previous month, when 7.6 percent was reached.
More: Ifo index falls to two-year low