Anyone who puts their purchases on the conveyor belt at the supermarket checkout can work up a sweat these days. Food has become expensive. And the trend continues to point upwards, as a survey by the IFO Institute shows. In the case of used cars, on the other hand, there is a ray of hope.
According to the IFO Institute, consumers in Germany must continue to be prepared for significantly higher prices when buying groceries. Retailers are planning “heavy price increases,” said the economic researchers. Around 97 percent of the grocers surveyed wanted to charge more.
Overall, over half of the companies surveyed by the IFO Institute are planning price increases across all sectors. In October, however, the share declined by 2 points to 51.5 percent. “The wave of inflation hasn’t broken yet,” said IFO economic chief Timo Wollmershäuser. “Above all, the high energy costs have not yet been fully passed on to consumers.”
One ray of hope: used cars are likely to become cheaper. For the first time since March 2021, traders’ price expectations fell here. Delivery problems with new cars due to the lack of chips had kept prices high. However, petrol and diesel remain expensive and are currently only slightly below the peak price of early September. The ADAC announced on Thursday that the fuels were too expensive in relation to the price of crude oil.
The food in the restaurant, on the other hand, is likely to be more expensive. According to the IFO survey, more than 80 percent of the catering establishments want to raise their prices – as do most sellers of consumer electronics, home textiles and carpets, paper and stationery as well as hardware and DIY stores. Industrial companies are also planning further price increases – albeit not quite as many as in the previous month.
According to the Federal Statistical Office, inflation in Germany was 10 percent in September and thus accelerated sharply again compared to the previous month. It was therefore the highest value that has been measured since reunification. In particular, high energy prices as a result of the Russian attack on Ukraine are driving inflation – but food also plays an important role. On Thursday, the European Central Bank raised interest rates to 1.5 percent to fight inflation.
