German Companies Plan Price Increases

BERLIN (Reuters) – Companies in Germany's industrial, retail, and corporate services sectors are planning more price increases, potentially driving inflation toward the European Central Bank's 2% target, according to a survey published on Tuesday.

The Ifo Institute's price expectations index grew to 15.9 in October from 14.1 points in September. Ifo's Sascha Moehrle stated, "In the coming months, the inflation rate should pick up again somewhat and reach the European Central Bank's 2% mark."

Retailers' plans to increase prices significantly contribute to inflation, with their indicator rising to 21.4 from 19.1 points.

Persistently high living costs in Europe's largest economy have sparked demands for higher wages, leading to a wave of strikes by electrical engineers and metalworkers that began on Tuesday.

After briefly dipping below the ECB target, German inflation is projected to rise again to 2.1% in October, according to analysts polled by Reuters, with preliminary data expected on Wednesday.