t-online shopping cart
Inflation is rising – but two products surprise
Updated on November 28, 2024Reading time: 3 min.
Inflation in germany has risen again. However, this is not yet reflected in the t-online shopping basket: the prices here were stable.
The inflation rate in Germany rose for the second time in a row in November. Goods and services rose in price by an average of 2.2 percent compared to the same month last year,as the Federal Statistical Office announced in its first estimate on Thursday. The rate was 2.0 percent in October, after reaching 1.6 percent in September, its lowest level in more than three and a half years.
Food cost 1.8 percent more. But how does this actually show up at the supermarket checkout? A look at the t-online shopping cart provides answers: The editorial team regularly compares the prices of selected products in the Rewe online shop and in branches of the supermarket chain.
a look at the receipt shows: The price increase has not yet been noticeable when shopping from t-online. Prices have remained stable compared to October. The bottom line is that shopping has not become more expensive. Things were different last month. Read more about it here.
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Two products have even become cheaper, such as vine tomatoes.They only cost 2.49 euros instead of 2.69 euros. That is around 7 percent less than in October.
The biggest surprise: The butter from the well-known brand Kerrygold was also cheaper in comparison. And that’s over 30 percent. While the price tag had been 3.39 euros the previous month, it now only cost 2.29 euros for the 200 gram pack in a cup.
This is remarkable because butter in Germany has recently been more expensive than ever since the founding of the federal Republic. According to the Federal Statistical office, butter was 41 percent more expensive in August 2024 than in 2020. Read more about it here.
Nevertheless, this finding should be viewed with caution.Even though the price of 2.29 is cheaper than the previous month and as a branded product it costs about as much as no-name products are currently being charged in discounters: it is indeed still significantly more expensive than it was a while ago.
Additionally, it might very well be that the price of the specific butter was influenced by offers. Other sizes and variants of the Kerrygold brand have been reduced. Even the 250 gram pack of the own brand “ja!” still cost 2.99 euros. So there can be no talk of a trend reversal yet.
In total, the products in the t-online shopping cart cost 65.11 euros in October. During last month’s survey, you still had to pay 66.41 euros for the same products. This meant that the shopping cart was 1.30 euros cheaper: a difference of two percent.
The discrepancy between the increase in the official inflation rate and the prices in the t-online shopping cart is due to the fact that the Federal Statistical Office includes significantly more prices from areas other than food in its calculations. The government statisticians also examine changes in prices for energy and services such as visits to the hairdresser.
For the survey: As the supermarket regularly changes its range, makes special offers or certain products are temporarily unavailable, not all items can be compared every time the t-online shopping cart is surveyed. This was taken into account in the total shopping cart with a corresponding adjustment.How much more expensive life actually becomes ultimately depends largely on your own consumption habits.
What factors contribute to teh current inflation rate in Germany, particularly regarding food prices?
Interview: Time.news Editor and Economic Expert on Inflation and Shopping Trends in Germany
Time.news Editor (TNE): Good day, and welcome to our special segment on the current state of inflation and its implications for consumers in Germany. Today, we have the pleasure of speaking with Dr. Clara Weiss, an economist specializing in consumer behavior and inflation trends. Thank you for joining us,Dr. Weiss.
Dr. Clara Weiss (CW): Thank you for having me. It’s a pleasure to be here.
TNE: Let’s dive right in. The recent report states that the inflation rate in Germany has risen to 2.2 percent. What do you think has contributed to this increase, particularly in the context of rising food prices?
CW: The rise in inflation can be attributed to various factors. Primarily, it reflects increased production costs, which many producers have passed on to consumers. Energy prices have been volatile, and supply chain disruptions continue to affect the availability and pricing of goods. Particularly, food prices have seen an increase of 1.8 percent, which reflects not only these production costs but also seasonal factors affecting supply.
TNE: Interestingly, the t-online shopping cart report mentioned that prices in the shopping basket have remained stable in recent weeks. How do you reconcile this stability with the broader inflation trends?
CW: That’s a grate question.It indicates that while inflation is indeed on the rise, some retailers, particularly online platforms like t-online, are absorbing costs rather than passing them on to consumers. This could be a strategic move to retain customers in a competitive marketplace where price sensitivity is increasing. It may also reflect efforts to maintain consumer confidence amidst rising costs in other areas.
TNE: The report highlights that two products, such as vine tomatoes, have actually decreased in price. What does this say about the current market dynamics?
CW: The decrease in prices for certain products can suggest a few things. It may indicate an oversupply or decreased demand within that specific category. In the case of tomatoes, perhaps there was a good harvest or a reduction in transportation costs that allowed prices to drop. This also reflects the complexity of retail pricing,where not all goods rise or fall in price uniformly. It’s essential for consumers to look beyond general trends and focus on specific product categories.
TNE: With rising inflation, what advice do you have for consumers looking to navigate their shopping in this environment?
CW: Consumers should prioritize budgeting and look for alternatives where possible. Shopping during sales, using discount platforms, and being mindful of seasonal produce can help mitigate some of the impacts of inflation.Moreover, understanding price trends for specific items can help consumers make informed purchase decisions, allowing them to avoid products that are subject to rapid price changes.
TNE: Last month’s report suggested that some grocery shopping might have remained unaffected by inflation.What could be the potential implications for the retail sector if this trend continues?
CW: If price stability continues in an inflationary environment, we could see a shift in consumer behavior. Shoppers might become more loyal to retailers that maintain stable prices, reducing their willingness to switch brands or shops. On the flip side,retailers that cannot maintain stable prices may lose customers. This could force a reevaluation of pricing strategies across the market, perhaps leading to price wars or more aggressive promotional strategies.
TNE: Thank you, Dr. Weiss, for sharing your insights with us. It seems the landscape for consumers is indeed complex, but with the right strategies, they can navigate these changes.
CW: It has been a pleasure discussing these important topics today. Thank you for having me.
TNE: And thank you to our viewers for tuning in. Stay informed and make wise choices in your shopping experience!