Inflation has fallen somewhat in recent months, but most people in Germany do not believe in a lasting relaxation.
The majority of people in Germany do not trust the recent easing in the inflation rate and expect further price increases.
According to the German results of a global survey, the auditing and consulting company EY reported that the number of consumers expecting rising prices for energy, fuel and food, for example, has fallen. However, a clear majority in this country is still convinced that life will become more expensive for them.
Accordingly, 70 percent of the 1000 respondents assume that food prices will increase in the coming months. 69 percent are preparing for rising energy costs, 65 percent expect higher fuel prices.
As in the previous survey in autumn, three out of four consumers in Germany (76 percent) say that they have to limit themselves when shopping. According to their own statements, 44 percent now only buy the essentials.
The latest inflation data give hope for relaxation
According to preliminary data, the annual inflation rate fell more sharply in May than economists had expected, both in Germany and in the euro area as a whole. The Federal Statistical Office has calculated an inflation rate of 6.1 percent for Germany. That’s the third straight decline and the lowest level since March 2022, when it was 5.9 percent. For the euro area, Eurostat also came up with an inflation rate of 6.1 percent for May 2023 after 7.0 percent in April.
Inflation, which has been high for months, is reducing purchasing power, and consumers can afford less for one euro. “Customers continue to pay very close attention to every euro they spend. However, they are in a much more positive mood and more willing to spend than they were a few months ago,” said Michael Renz, Head of Consumer Goods and Retail at EY in Germany, summarizing the results of the recent poll together.
Source: Stern
