ISTANBUL

German companies are increasingly planning to raise their prices as energy costs surge amid ongoing conflict in the Middle East, according to a survey released Monday.

The Munich-based ifo Institute said its price expectations indicator climbed to 25.3 points in March, up from 20.3 points in February; this marks the highest level since March 2023.

"Price pressure in Germany is noticeably growing again," said Klaus Wohlrabe, head of surveys at ifo, adding that high energy prices are likely to raise inflation in the coming months.

The institute attributed the rise in expectations to considerably higher prices for crude oil, gas, and electricity.

"Companies are increasingly passing on rising costs," Wohlrabe said, noting that energy prices will also impact goods and services through higher production and transport costs.

Manufacturing saw a sharp rise in price expectations from 13 to 20 points, while the construction sector jumped from 10 to 20.2 points.

Consumer-related service providers raised their expectations from 25.1 to 31.6 points.

Business-related service providers, including wholesalers, also reported more frequent plans for increases, with the indicator rising to 27 points from 24.7.