This is what inflation and the consequences of the war cost German households per month

image alliance/dpa | Sven Hoppe

According to calculations from an analysis by PwC Germany, German households spend around 242 euros more each month due to price increases.

Since the start of the war in Ukraine, food prices have continued to rise, especially grain, vegetable oil and meat.

According to a survey, 58 percent of consumers increasingly use special offers, 39 percent use cheaper own brands.

According to a PWC survey, consumers are increasingly turning to cheaper products. Since the beginning of the Russian war of aggression against Ukraine, the prices of gasoline, electricity and gas, but also of food such as cereals, vegetable oil and meat, have continued to rise. According to current figures from the Federal Statistical Office, the auditing and consulting company PwC Germany has calculated that the additional costs for average households amount to up to 242 euros per month, as the “Lebensmittelzeitung” first reported. They add up to a total of 2904 euros per year.

According to the assessment, €65 of the €242 per month is spent on groceries and €89 on rising energy costs such as electricity, gas and heating oil. 40 euros would be paid for increasing transport costs. The other additional costs should result from the effects of rising inflation in the other product groups.

When it comes to groceries, meat and sausage products in particular could rise the most in price, by as much as 50 percent. The reason is higher prices for food, transportation and refrigeration.

“In the current situation, consumers are forced to take a closer look at the price tag: they take advantage of special offers and cheap private labels, while non-essential luxury foods and expensive organic foods are increasingly left in the shelves,” says Christian. Wulff, head of the Retail and Consumer Goods division of PwC Germany and EMEA.

read too

Shopping cart_Aldi

This purchase of ten Aldi products cost 23.16 euros on Friday -after the price increase it was already more than eight percent more expensive-

Andreas Späne, Partner Retail & Consumer Practice, the strategy consultancy, explains that the effects of the price increase would also affect other market segments. For example, German households reduced their spending on fashion, travel and gastronomy, which could prevent the expected rebound after the lifting of coronavirus measures.

According to this, 58 per cent of consumers are increasingly turning to special offers and 39 per cent use cheaper own brands. 24 percent trust discount stores more and avoid certain foods such as meat and sausage, according to results from PwC analysis from January 2022.

Low-income people in particular suffer from price increases. “Nearly a quarter of all German households have to get by on less than 1,700 euros net and barely have a cushion to cover the extra costs. People with low incomes are particularly affected by price increases, even if the government is creating some relief with the recently adopted package of measures. Ultimately, it is also about social peace,” says Andreas Späne.

MS

Leave your vote

Leave a Comment

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.