2023-10-09 06:17:49
Rapidly rising prices have been putting pressure on German consumers for months. Many people don’t have enough money for everyday expenses. But there is hope.
Frankfurt/Bonn.
According to their own statements, around one in six Germans can hardly afford their living costs due to high inflation. 17.2 percent of 2,059 respondents in a YouGov survey for Postbank chose this answer option when asked how they perceived the price increases. In the comparison survey from January 2022, the proportion of those who are reaching financial limits due to the sometimes significantly increased prices for food and energy was 11 percent, according to information from Postbank, which is part of the Deutsche Bank Group, on Monday.
Overall, more than a third of those surveyed for the current survey from September 15th to 18th this year rely “a lot” (10 percent) or “somewhat” (28.1 percent) on savings for everyday expenses. One in six (17.7 percent) stated that they did not have any reserves. Four out of ten respondents (39 percent) say they have enough regular income to be able to cover the increased prices.
Inflation rate has fallen significantly recently
In view of the latest inflation data, consumers can hope for relief: in September, the annual inflation rate in Germany fell to 4.5 percent, according to preliminary calculations, the lowest level since the start of the Russian war of aggression on Ukraine in February 2022. Economists expect a further weakening Inflation in the coming months.
“With inflation slowly but at least declining, the situation should ease,” said Deutsche Bank’s chief investment strategist for private and corporate customers, Ulrich Stephan, describing the survey results. However, Stephan, like other experts, expects that inflation “will remain above 2 percent for quite some time, despite the significant interest rate increases by the European Central Bank.” The European Central Bank (ECB) is aiming for price stability with two percent inflation for the euro area in the medium term.
With a series of ten interest rate increases since July 2022, the euro currency watchdogs are counteracting inflation, which has been significantly increased for some time. Higher interest rates make loans more expensive, which can slow down demand and counteract high inflation rates. The key interest rate at which banks can obtain fresh money from the central bank is now 4.5 percent. The deposit interest rate that banks receive for parked funds has reached 4.0 percent, the highest level since the monetary union was founded in 1999. Banks are again vying for savers with higher interest rates for fixed-term and overnight deposits.
A lot of savings money is parked in the checking account
In the YouGov survey, the results of which were weighted and therefore representative of the German population aged 18 and over, almost a third (31 percent) of the 2,059 respondents said that they had continued to save despite the sharp rise in prices. 18.8 percent say they even put more money aside. 20.8 percent said they were building fewer reserves; 8.7 percent of participants have stopped saving altogether.
According to the survey, those who save money mostly leave it in their checking account (47.6 percent) – although the majority of those surveyed (60.5 percent) say they know that these reserves are losing value due to inflation. (dpa)
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