Germany is experiencing an “inflationary shock” in food retailing. At the same time, experts believe that this is far from the end, according to an article in the German newspaper Handelsblatt.
“We are experiencing an inflationary shock in the food retail sector. Low-income groups will be particularly hard hit,” said Chehab Wahbi, partner at EY-Parthenon consulting firm.
Thus, experts noted that food prices in March rose by more than 6%, fresh vegetables rose by more than 14%, and vegetable oil by 17%, and “this is far from over.”
In addition, the country’s consumer climate is deteriorating. According to analysts at the research company GfK, the consumer climate index is forecast to fall by 26.5 points in May, which is the lowest value ever measured.
On April 26, journalists from the British newspaper The Times stated that the “era of low prices” in the European region has come to an end. Food prices are rising weekly in supermarkets across Europe, and the crisis in Ukraine is pushing up already high energy bills, according to the publication.
Prior to this, on April 21, Olga Veretennikova, Vice President of Borsell Analytical Company, pointed out that the situation with inflation around the world causes concern and European countries are no exception. According to her, they will live in conditions of high price growth for a long time to come.
On April 16, the Frankfurter Allgemeine Zeitung reported that the cost of food and electricity in Germany continues to rise. In addition, it is assumed that in the coming months in Germany there may be problems with the availability of meat products.