BERLIN – A recent survey reveals that German companies’ stock price expectations are on the rise, pointing to a possible rise in inflation towards the 2% target set by the European Central Bank (ECB). . The Ifo Research Institute’s price expectations index, which measures German companies’ pricing plans, was 15.9 in October, up from 14.1 in September.
“Inflation will rise slightly in the coming months, reaching the 2% level set by the European Central Bank,” said Ifo’s Sascha Mehle. The comments reflect research suggesting that inflation, which has so far been below the ECB’s target rate, is expected to rise.
Retailers put particular emphasis on their pricing strategy, with the sector’s price index increasing from 19.1 points to 21.4 points. This research shows that retailer price adjustments are an important factor in the overall inflation outlook.
The effects of these price increases are already clearly visible in the daily lives of Germans. Electrical engineers and metalworkers went on strike today, highlighting the far-reaching impact of persistently rising costs of living in Europe’s largest economy. These workers are demanding higher wages to meet rising costs.
Analysts expect German inflation could reach 2.1% in October, slightly above the ECB’s target. This forecast is pending confirmation based on preliminary data released on Wednesday. The current situation suggests that both consumers and policy makers will closely monitor developments in the German economy.
Reuters contributed to this article.
This article was translated with the help of artificial intelligence. Please see our Terms of Use for more information.
