According to a survey by the Ifo Institute, more companies than ever before want to raise their prices in the next three months.
The index of price expectations determined by the Ifo rose to a record high, as the institute announced on Thursday in Munich.
It expects inflation of over seven percent in the coming months.
The main reason for the strong price increases are higher costs for the procurement of energy, raw materials, other preliminary products and commodities, explained the Ifo.
"In our most recent survey in April, however, the companies stated that they could not pass these costs on to their customers in full and accordingly reduced their profit margins," said Ifo economic chief Timo Wollmershäuser.
According to the survey, 57.7 percent of wholesalers can pass on their costs, followed by industry with 51.4 percent.
In retail, construction and service providers, only a small part of the cost increases could be passed on, at 35.3 percent, 25.2 percent and 23.8 percent respectively.
The Ifo Institute does not ask about the amount of the planned price change.