Retailing (Germany):
Increasing prices

The business situation in retailing was assessed by the survey participants as considerably worse than in the previous month. Inventory pressure increased so that the firms continue to exercise caution in placing orders. Also with regard to the business outlook for the coming half year they are more sceptical. According to the survey responses, prices will also increase perceptibly in the coming months. Strong price increases are reckoned with particularly in food and beverages. But also in the non-food sector, wide-scale price increases are expected so that pressure on consumer prices from this side remains high. Neither these survey results in retailing nor those of consumer goods manufacturers and consumer goods wholesalers currently point to a sustainable recovery of private consumption.