Today: Wednesday, 17 August 2022 year

In Germany, there is an inflation shock in the food sector

In Germany, there is an inflation shock in the food sector

Germany is experiencing an inflationary shock in the food retail sector. Food prices rose by more than 6 percent in March. At the same time, the cost of fresh vegetables increased by more than 14 percent, and vegetable oil – by 17 percent. Chehab Wahbi, a partner at EY-Parthenon consulting company, believes the country is experiencing an inflationary shock. Low-income people will be particularly hard hit, he added. According to GfK, 85 percent of consumers expect the price of everyday goods to rise. Before the escalation of the situation in Ukraine, 77 percent of citizens thought so.

The consumer climate in Germany is deteriorating. According to the GfK forecast, the consumer climate index will decrease by 26.5 points. This is the lowest value for all time of measurements. Company expert Robert Kechkes said that consumer budgets have shrunk due to overall rising costs. The reason for this was the strong uncertainty of the Germans, he added.

Earlier, the country’s Federal Statistical Office (Destatis) reported that annual inflation in April 2022 in Germany will accelerate to 7.4 percent, which is a record for many years. Rising prices provoke a crisis in the energy markets and problems with supplies.