High energy prices and delivery bottlenecks are causing problems for businesses. And consumers are increasingly feeling the effects. In the Ifo index, more companies than ever have said they want to raise prices.
According to an Ifo Institute survey, more companies than ever want to raise prices in the next three months. The Ifo-determined price expectations index rose to record highs, the institute in Munich announced Thursday. Inflation of over seven percent is expected in the coming months.
The main reason for the sharp rise in prices is the higher costs of procuring energy, raw materials, other preliminary products and raw materials, the Ifo explained. “In our most recent survey in April, however, companies said they could not fully pass these costs on to their customers and consequently reduced their profit margins,” added Timo Wollmershäuser, head of Ifo economics.
According to the survey, 57.7% of wholesalers can pass on their costs, followed by industry with 51.4%. With 35.3%, 25.2% and 23.8%, respectively, cost increases in retail, construction and service providers could only be passed on to a small extent. The Ifo Institute does not ask for the amount of the expected price change.
High inflation creates uncertainty
High inflation is fueling heated debates on the role of the European Central Bank (ECB). After board member Isabel Schnabel had already called for an interest rate hike in July, her colleague on the ECB board of directors Fabian Panetta on Thursday highlighted the role of interest rates for the economy in the economy. euro area.