German inflation has likely peaked, says Ifo expert

The proportion of German companies that plan to increase prices declined for the third month in row in July, an indication that inflation has peaked, an Ifo institute survey found.


Reuters | Berlin | Updated: 28-07-2022 13:23 IST | Created: 28-07-2022 13:20 IST
German inflation has likely peaked, says Ifo expert
Representative Image Image Credit: ANI
  • Country:
  • Germany

The proportion of German companies that plan to increase prices declined for the third month in a row in July, an indication that inflation has peaked, an Ifo institute survey found. "Prices are still likely to continue to rise, but the pace will slow," said Ifo head of forecasts Tim Wollmershaeuser on Thursday, adding there was usually a few months' lag between company price expectations being reflected in consumer prices.

"This means that inflation has probably reached its peak and will gradually decline in the course of the second half of the year," he added. Ifo's indicator for the proportion of companies planning to increase prices in the next three months slipped to 47.4 in July, from 52.9 last month and 57.8 in May.

The German inflation rate cooled slightly in June to 8.2% on the year. Analysts polled by Reuters expect the July figure to come in at 8.1%.

Also Read: Financial regulator sees stormy waters ahead for Germany

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Give Feedback