German companies are increasingly planning to raise prices again, according to a poll released on Wednesday, indicating that the decline in inflation in Europe's largest economy could stall.

The Ifo economic institute said price expectations rose to 19.7 points in December from 18.1 points the previous month.

The indicator reached a temporary low in August at 14.5 points.

Restaurants in particular were looking to increase prices at 87.6 points versus 45.9 points in November. They are likely to pass on a VAT increase to diners as a pandemic-era tax break for the industry expires, Ifo said.

A spike in energy prices pushed German inflation into double digits last year but inflation has been easing since late 2022. (Reporting by Rachel More Editing by Miranda Murray)