Dhe Germans are pessimistic in a European comparison that their household expenses will continue to rise in the current year. According to a survey published on Tuesday, 43 percent believe that their financial situation will continue to deteriorate. The proportion of Germans whose concerns about inflation are increasing is ten percentage points higher than the measured European average.
32 percent of consumers in Germany expect the situation to improve in the current year. In this respect, the Germans are two percentage points more positive than other Europeans. The Bulgarians are the most optimistic, with 44 percent anticipating an improvement. The mood is worst in Slovenia. More than half of those surveyed (55 percent) there fear that things will get even tighter financially this year.
For the study by the Scandinavian financial service provider Ferratum, consumers in 13 European countries were asked in October 2022, when the inflation rate in the EU climbed to 11.5 percent, how the inflation was affecting them. The Europeans surveyed perceived the consequences of inflation most strongly in food prices, closely followed by energy prices. In Germany, however, the order was reversed.
Travel saves
However, the Europeans surveyed saved the most on travel expenses. 68 percent reduced their travel budget. In Germany, too, most respondents – 56 percent – cut back on travel. More than half of the Europeans surveyed also reduced spending on entertainment; in Germany it was 42 percent. On the other hand, Germans saved comparatively more on food: 40 percent of consumers stated that they spent less money on food. The European average was 35 percent.
With inflation, the risk of borrowing has also increased. Almost half of the Europeans surveyed (49 percent) were unable to pay bills on time in the summer and autumn of 2022. In Germany, the proportion of households that were unable to meet their payment obligations on time was even significantly higher at 56 percent. Respondents in Germany put the probability of taking out a loan because of the increased electricity and gas bills at 50 percent.
Swedes pay the most on time
According to the survey, however, Croatian consumers had the greatest payment problems due to inflation: more than 70 percent were in arrears with paying their bills. It looked best in Sweden. There, the proportion of those who could not pay on time was one third.
It couldn’t have been due to higher salaries that fewer Swedes had problems paying their bills. Rather, Swedish employees were among those who benefited less than average from wage increases during the inflationary period. Just over a quarter of respondents (26 percent) in the Scandinavian country said their salary had increased over the past 6 months.
The lowest proportion of workers whose rising cost of living was at least partially offset by better pay was in Denmark and Slovenia (both 17 percent). In Germany, 35 percent of those surveyed benefited from salary increases during the inflation period. The Czech Republic and Romania led the way, with 44 percent and 42 percent respectively answering the question of salary increases in the affirmative.
When asked about the spending priorities for the winter of 2022/2023, the vast majority of Germans surveyed had the following priorities: paying bills and repaying loans.