The new inflation figures will be published this Monday – it should be shocking once more!
One thing is already clear: Germans will probably have to pay significantly more for groceries in the coming months.
“Prices in food retail are likely to increase by more than 10 percent in 2022,” said retail expert Aurélien Duthoit from Allianz Trade on the results of a study.
Converted, this corresponds to an average of 250 euros in additional costs per year per capita!
► Food manufacturers have increased their prices in Germany by an average of 16.6 percent since the beginning of 2021.
► The surcharges were strongest for everyday products, including oils and fats (53 percent), flour (28 percent) and pasta (19 percent).
But: At the same time, prices in food retail rose “only” by 6 percent – so there is still some catching up to do.
The Federal Statistical Office will provide information on Monday (2:00 p.m.) on the basis of an initial estimate as to whether and to what extent the inflation rate in Germany continued to rise in May.
The main drivers of inflation in Germany and in the euro area have recently been the sharp rise in energy prices. This trend has been exacerbated by the Russian attack on Ukraine. In addition, as during the Corona pandemic, the industry is struggling with the fact that supply chains are not working smoothly.
Higher inflation rates reduce the purchasing power of consumers because they can then afford less for one euro. The federal government has put together two billion-dollar packages to relieve people.
In the meantime, there are also signs of the first interest rate hike in the euro area in more than ten years: the European Central Bank (ECB) might set the course for this at its next meeting on June 9th. Rising inflation can be combated with higher interest rates.
