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Inflation is Returning! More and More Firms in Germany Plan to Increase Prices

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  • Robert Lehmann
  • Timo Wollmershäuser

Abstract

The Ifo price expectations are a reliable early indicator of sector-specific price development. In addition, the Ifo indicator is able to forecast the core rate of German inflation more accurately than a simple reference model. According to the most recent survey results of the Ifo Business Survey, more and more companies intend to raise their prices in the future. For this reason, the recent rise in inflation is likely to remain high in both the upstream manufacturing stages as well as at the final consumption levels in the coming months. Inflation in Germany is returning.

Suggested Citation

  • Robert Lehmann & Timo Wollmershäuser, 2017. "Inflation is Returning! More and More Firms in Germany Plan to Increase Prices," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 70(05), pages 16-21, March.
  • Handle: RePEc:ces:ifosdt:v:70:y:2017:i:05:p:16-21
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    File URL: https://www.ifo.de/DocDL/sd-2017-05-lehmann-wollmershaeuser-preiserwartungen-2017-03-09.pdf
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    References listed on IDEAS

    as
    1. Guglielmo Maria Caporale & Margarita Katsimi & Nikitas Pittis, 2002. "Causality Links between Consumer and Producer Prices: Some Empirical Evidence," Southern Economic Journal, John Wiley & Sons, vol. 68(3), pages 703-711, January.
    2. Todd E. Clark, 1995. "Do producer prices lead consumer prices?," Economic Review, Federal Reserve Bank of Kansas City, vol. 80(Q III), pages 25-39.
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    Cited by:

    1. Timo Wollmershäuser & Stefan Ederer & Friederike Fourné & Christian Glocker & Max Lay & Robert Lehmann & Sebastian Link & Sascha Möhrle & Joachim Ragnitz & Ann-Christin Rathje & Radek Šauer & Stefan S, 2022. "ifo Konjunkturprognose Winter 2022: Inflation und Rezession," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 0(Sonderaus), December.
    2. Robert Lehmann, 2023. "The Forecasting Power of the ifo Business Survey," Journal of Business Cycle Research, Springer;Centre for International Research on Economic Tendency Surveys (CIRET), vol. 19(1), pages 43-94, March.
    3. Stefan Sauer & Klaus Wohlrabe, 2020. "ifo Handbuch der Konjunkturumfragen," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 88.
    4. Klaus Wohlrabe & Timo Wollmershäuser, 2017. "Constructing an Aggregate ifo Capacity Utilisation," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 70(15), pages 26-30, August.
    5. Wolfgang Nierhaus, 2017. "Current Consumer Price Development in the Euroarea," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 70(05), pages 22-26, March.

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    More about this item

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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