Status: 11/11/2022 11:30 a.m
Inflation in Germany is at its highest level in 70 years. The Federal Statistical Office has now announced which prices have risen particularly sharply. Saving tips come from consumer advocates.
Inflation in Germany passed the ten percent mark in October. Consumer prices increased by 10.4 percent compared to the same month last year – the strongest increase in about 70 years. Inflation has never been higher in reunified Germany. The Federal Statistical Office (Destatis) confirmed its preliminary estimate today. At the same time, the Wiesbaden authority announced details of which prices for households have risen particularly sharply.
Household energy continues to be at the forefront of inflation
As in the past few months, the number one inflation driver is energy prices, which have risen significantly as a result of the Russian attack on Ukraine and the associated slump in supply. “The main reasons for the high inflation are still enormous price increases for energy products,” explains Georg Thiel, President of the Federal Statistical Office. Despite the relief measures taken by the federal government, energy prices in October were 43 percent higher than in the same month last year.
According to Destatis, household energy in particular has become significantly more expensive: the price of natural gas has more than doubled (109.8 percent), and the price of district heating also shot up by 35.6 percent. The reduction in sales tax from 19 to seven percent was only able to moderate these increases slightly. It is also said that heating with other energy sources has become significantly more expensive. The prices for firewood, wood pellets or other solid fuels then increased by 108.1 percent, the prices for light heating oil were almost 83 percent higher than in the same month last year. Electricity also became more expensive by 26 percent.
Consumers also had to dig deeper into their pockets for fuels such as petrol and diesel. The increase was more than 22 percent. In addition to the increase in international purchase prices, the increase in CO2 tax from 25 to 30 euros per tonne at the beginning of the year also contributed to this.
Groceries are a fifth more expensive
But not only energy has become drastically more expensive. “We are also increasingly observing price increases for many other goods and services,” says Thiel. The high prices for food are now particularly noticeable for private households. In October, 20.3 percent more money was asked for this than in the previous year. For comparison: Between 2000 and 2019, food prices rose by just under 1.5 percent on average.
Edible fats and oils (49.7 percent), dairy products and eggs (28.9 percent), vegetables (23.1 percent) and bread and cereal products (19.8 percent) became significantly more expensive. The statisticians point to supply bottlenecks and problems in upstream stages of the economic chain as the reason for the price increase, which is almost twice as high as the overall rate of inflation.
Because many factors are changing the situation in agriculture and the food industry, as the consumer centers report. The costs of energy, fertilizer and animal feed have risen sharply. In addition, labor shortages and minimum wages have made personnel costs more expensive. The first price surge in food started in July 2021 and has continued month after month to this day.
Consumers should know that
That’s why the consumer advocates have some tips ready for German households. First, they should always compare the price of food per kilo. Secondly, origin and season play an important role. Seasonal vegetables, currently such as kale, pumpkin or Brussels sprouts, which grow in the region are usually cheaper because they don’t have to be transported far and have to be cooled in a complex manner.
Unsaturated fatty acids, which are found in vegetable oils such as olive oil, linseed oil or soybean oil or certain types of margarine, are recommended as a substitute for the currently extremely expensive butter – in some cases 250 grams cost a whopping three euros. The prices for meat, sausage and fish have also risen sharply compared to October 2021 (19.3 percent). Consumer advocates therefore recommend replacing it with plant-based foods. Good alternatives are legumes such as lentils, peas, beans, chickpeas, soybeans and lupins as well as rice, couscous, bulgur or pasta as energy suppliers.
In addition, shopping at the weekly market can be cheaper than in the supermarket, write the consumer advice centers. In general, it is worthwhile to draw up a meal plan for the week or at least the following days and use it to plan your shopping. Such a shopping list reduces the often expensive spontaneous purchases. In addition, it is usually cheaper to prepare meals yourself than to use ready meals or delivery services.
Inflation excluding energy and food significantly lower
The so-called core inflation rate shows the extent to which energy and food prices influence the overall rate of inflation – i.e. without taking energy and food into account. According to Destatis, this was only five percent in October and thus not even half as high as the overall inflation rate. The prices of durable goods, including furniture and cars, rose by 6.7 percent overall.
The costs for services in general were four percent higher than in the previous year. Net basic rents rose by 1.8 percent, maintenance and repairs of apartments by 14.8 percent, package tours by 12.3 percent and restaurant services by 8.8 percent. In addition, as in the previous month, commuters had to dig more than two percent deeper into their pockets due to the expiry of the 9-euro ticket for regional and local public transport. On the other hand, only the prices for a few services, such as telecommunications and social services, fell slightly.
The Inflation Compensation Act passed by the Bundestag yesterday should give consumers hope that they will be able to shoulder the rapidly rising prices. These include a change in the income tax rate, an increase in child benefit, a one-off payment for gas and district heating and other relief.