Nearly all food retailers in Germany are planning for price hikes – Ifo survey

News

A couple of interesting notes from Ifo’s latest survey on price expectations among retailers:

  • Toy retailers’ price expectations rose significantly from 75.4 last month to 94.4 in November
  • Food retailers, stationery stores, drugstores, clothing manufacturers’ price expectations all came in above 90 points as well

However, when weighed as a whole, retail is planning for fewer price hikes with the index coming in at 50.6 points this month as opposed to 62.4 points in October. For some context on how to read the survey readings, if all companies surveyed intend to increase prices, the balance would be 100 points.

Another comforting development is that service providers and the construction industry are also seen as less likely to plan to raise their prices as compared to last month as well.

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