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Money Consumers must set rising prices

10:56  19 january  2022
10:56  19 january  2022 Source:   rp-online.de

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Munich. The pricing index of the Munich Economic Research Center IFO has only minimized in December. This means that consumers in Germany have to adjust to further price increases in the new year.

 Verbrauchern drohen höhere Preise. © Fabian Sommer Consumers threaten higher prices.

German consumers and companies must set out further price increases in accordance with the IFO Institute. The index of Munich economic researchers for price expectations fell slightly to 44.6 points in December, as the institute announced on Wednesday. In November they had reached a record value with 44.9 points. The survey values ​​are bent through all sectors. "This will go through to consumer prices," said economic expert Timo Wollershäuser. "Inflation will only slowly decrease in the course of this year."

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for the coming months, the institute expects inflation rates to be over 4 percent and gradually approach the 2-percent mark towards the end of the year. For the full year, the IFO now expects an inflation rate of about 3.5 percent.

The companies continue to give the increased costs for energy as well as the procurement of pre-products and merchandise. Even if the increase in energy prices should not continue in the coming months and the stock market prices for natural gas, electricity and crude oil remained unchanged, ensure that a while for high inflation rates. The researchers assume that the increase in consumer prices is measured compared to the previous year. Thus, consumers would have to spend average of 10 percent more energy this year.

The labor costs are not likely to drive inflation in addition. "The previous wage negotiations indicate no wages price spiral. We expect the tariff sewings to grow by almost two and a half in this year, "said Wollmershäuser. That would be as strong as on average the years before the Corona crisis.

In December, German inflation rate was 5.3 percent and climbed to the highest level for almost 30 years.

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