Rising inflation
This party is calling for a price cap for mulled wine
Updated on December 11, 2024Reading time: 2 min.
The cost of living is rising in Germany, the cause is inflation. The parties are now making suggestions on how the problem could be addressed.
It’s the time before Christmas, and the children’s wish lists are growing. This year, Advent is also a time of tough demands and big promises, because the federal election is coming soon and the election campaign has picked up speed in Germany. Chancellor Olaf Scholz is now campaigning for a reduction in VAT on food. The Social Democrat suggests that this should fall from 7 to 5 percent. Given the high cost of living, the burden on private households should be relieved.
“That would help a lot of people who earn little money, and it wouldn’t be an excessive burden on the federal budget,” said Scholz on the ARD “Tagesthemen”. “I think it’s important now that we do something very manageable that everyone notices every day when it comes to their daily needs,” said Scholz. Although inflation has fallen, it is still higher “for those who have to go shopping every day and do accurate math.”
In November, consumer prices in Germany were 2.2 percent higher than in the same month last year. In October, the annual rate had already risen to 2.0 percent after two months of falling values.
The left also takes the same line. She is now calling for a price cap for mulled wine at Christmas markets. “This year, for the first time, mulled wine will be sold at Christmas markets for over seven euros – on average it now costs 4.24 euros – seven percent more than in 2023!” says a paper by Left leader Jan van Aken, which is called an “action plan” is titled. “Many people can no longer afford a trip to the Christmas market.” The magazine “Stern” reported on the paper.
The Left wants to achieve a maximum price of 3.50 euros per cup of mulled wine through two measures. On the one hand, the municipalities should halve the stand fees for those mulled wine sellers who offer the drink for less than 3.50 euros and children’s punch for less than 2.50 euros. “So far, stand operators have been paying relatively high stand fees, which they of course pass on to us – politicians can take countermeasures here,” says the paper. On the other hand, the showmen should be obliged to make their costs transparent. “Anyone who charges prices that cannot be justified by the costs will not be able to stand next year,” is the demand of the Left leadership.
No expert is currently expecting a wave of inflation like that in 2022, when energy and food prices skyrocketed as a result of the Russian attack on Ukraine and the inflation rate in Germany climbed to almost nine percent. High inflation rates reduce the purchasing power of consumers.