BERLIN, Jan. 16 (Xinhua) -- Germany's price expectations index has risen to its highest level since April 2023, driven by contributions from all economic sectors, according to the economic institute ifo on Thursday.
The index climbed to 19.7 points in December, up from 15.8 points in November. The ifo price expectations indicate the percentage of companies planning to raise prices.
"In the coming months, the inflation rate is expected to level off at around 2.5 percent, remaining above the European Central Bank's target," Timo Wollmershaeuser, ifo's head of forecasts, said.
Price expectations increased across various sectors in December, including consumer-related service providers, manufacturing, and business-related services. The rise is attributed to persistent supply chain pressures, volatile energy prices, and rising labor costs. These factors have prompted many businesses to plan price hikes to maintain profitability.
The increase in price expectations signals ongoing inflationary pressures in Germany, which could complicate the European Central Bank's efforts to achieve its target inflation rate of around 2 percent. ■