German inflation is expected to reach 4% this year, according to the Ifo Institute, upgrading December estimates to 3.3%.
The economics institute’s barometer for price expectations for the next three months rose 1.3 points from 46 points in January to a new high.
The respective percentages of November and December, were formed at 45 and 47 points respectively.
“Businesses are passing on the increased costs of energy and the supply of intermediate products and commodities to their customers. These increases will filter consumer prices,” said Timo Wollmerschaeuser, head of forecasts at Ifo.
All sectors reported high indices, especially the wholesale sector, at 60.3 points, and the retail sector at 57.7 points.
The figures reflect the results of the German Retail Association (HDE) barometer, which fell for the third month in a row to 94.62 points, as more people wait to see how the pandemic develops before moving on to major markets.
Concerns about rising prices, especially for energy, among Germans wary of inflation are likely to hit retailers further in 2022, HDE said last week, warning that nearly 16,000 stores would disappear in 2022. .
Recent data show that retail sales fell 5.5% in December in real terms, well above the forecast of 1.4%.
Source: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
