The Munich Ifo Institute expects low inflation rates in the coming months. Fewer and fewer companies want to increase their prices, according to a monthly index collected by Munich economic researchers. In September it fell by 2.3 points to 13.8. This is the lowest level since February 2021.

In August, the inflation rate fell significantly to 1.9 percent due to lower energy prices. For the first time in over three years it was below two percent.

“The economic crisis reduces the scope for companies to raise their prices,” said Ifo economics boss Timo Wollmershäuser. “This means that the inflation rate in Germany is likely to remain below the two percent mark that the European Central Bank is aiming for in the coming months.”

In the consumer-related sectors of the economy, the index fell even more: from 25 to 18.2 points. The index is calculated as the percentage of companies that want to increase their prices, minus the percentage of companies that want to lower their prices. How much the prices should be increased or reduced is not asked.