More German companies are preparing for a potential price increase in April, keeping the inflation rate over the European Central Bank's 2 percent target in the upcoming months, according to an announcement by the Ifo Institute on Monday.
The institute also revealed that the measure of Ifo price expectations experienced a slight increase, rising to 15.1 points in April from 14.3 points in the previous month.
"In the near term, inflation isn't expected to decrease. In fact, it’s anticipated to remain a bit over 2 percent," said Sascha Mohrle, an economics expert at the Ifo Institute.
Price expectations witnessed a rise in industries closely related to consumers. This includes mostly the hospitality sector, game and toy retail, and drugstores. On the other hand, fewer food retailers, hotel proprietors, and tour operators are considering hiking prices.
In the construction field, companies predict a decrease in prices, while manufacturers' price expectations have eased.