Germany's price expectations hit 2-year low in March 2024: ifo

Retail sector reported a cautious stance, with price expectations falling to 25.4 points from the previous 29.5 points. Contrastingly, the manufacturing sector showed a slight uptick in price expectations, rising to 6.4 points from 5.0 points.

This downward trend was most pronounced in consumer-related industries, where the intention to raise prices has notably diminished. The sector's price expectation index dropped to 24.6 points from 28.7 points.

“Inflation is still on the decline and should fall below 2 per cent this summer. From a German perspective, there’s no reason why the ECB shouldn’t cut interest rates soon,” said Timo Wollmershauser, head of forecasts at ifo.

Fibre2Fashion News Desk (DP)