Slightly fewer German companies planning price increases – Ifo

BERLIN, (Reuters) – The number of companies in Germany planning price increases has eased somewhat but the full effect of inflation has not yet reached consumers fully, the Ifo institute said citing the results of a survey.

For the economy as a whole, price expectations for the coming months fell to 51.5 points in October, down from 53.8 points in September in seasonally adjusted terms, the Ifo said.

Trade and manufacturing in particular were planning fewer increases, while price expectations were rising among service providers and in construction, it added.

“The wave of inflation has not yet broken,” said Timo Wollmershaeuser, head of forecasts at Ifo. “In particular, the high cost of energy hasn’t yet been fully passed on to consumers.”

German inflation reached double digits in September at 10.9%, its highest level in over 25 years. The inflation rate for October is to be announced later Friday, with analysts expecting the harmonised consumer price index to remain unchanged.

(Writing by Rachel More, editing by Kirsti Knolle)