Filter by Categories
Watch Series
The Great Game
Daily Post
Steno Signals
Free Samples
Emerging Markets
Video

IFO Nugget: Disinflation, lay-offs and weak orders/inventory ratios

The IFO Survey from Germany was a mixed bag of goodies but it emphasizes the trends seen lately. Germany is likely in a disinflationary recession already.
2023-08-29

The IFO details (released T+2 of the headline survey) revealed that overall price plans/expectations of companies now move sideways. The price survey is back in “normal territory” after the bizarre spike in 2022 and the survey remains consistent with a return to 2% inflation this year.

The issue is just if inflation starts rebounding from levels around or just below 2%, which is clearly not a scenario we can rule out for now, given that price trends move sideways at high levels within the normalized range.

Chart 1: Price plans suggest that 2% can be reached, but we are not going much below

 

 

The IFO Survey from Germany was a mixed bag of goodies but it emphasizes the trends seen lately. Germany is likely in a disinflationary recession already.

To read the full article, sign up for a 14-day FREE trial of the Premium plan.

0 Comments