The inflation rate was particularly low in September. Now prices have risen sharply again. But this does not apply to all products.
The inflation rate in Germany is rising again. In October, consumer prices were two percent higher than in the same month last year. The Federal Statistical Office announced this based on preliminary figures. Experts had expected a smaller increase. In September it had fallen to 1.6 percent, its lowest level in around three and a half years. From September to October, costs rose by 2.0 percent.
The price increase for food was even 2.3 percent. But how does this really affect the prices at the supermarket checkout? To do this, t-online looks into the shopping cart and looks at the development compared to the previous month: Our editorial team regularly notes the prices for selected products in the Rewe online shop and in branches of the supermarket chain.
In September, the price of potatoes had risen by almost 14 percent compared to the previous month. In October it fell again – and was even able to more than compensate for the price jump: a kilo of waxy potatoes was around 20 percent cheaper: instead of 2.49 euros, it was only 1.99 euros. One reason for this could be that there are particularly many potatoes on the market at the moment. The Federal Ministry of Food and Agriculture expects a record harvest of around 12.7 million tonnes in Germany in 2024: nine percent more than in the previous year.
Iceberg lettuce, on the other hand, became more expensive. In September the price for a head had already risen by 34 percent, from 0.66 euros to 0.89 euros. Now it has increased by a further 34 percent: to an impressive 1.19 euros. Also more expensive: Coca-Cola. A container of four one-and-a-half liter bottles cost around six percent more. Instead of 7.16 euros, 7.56 euros were due.
Overall, one product in Germany is currently more expensive than ever before: butter. Read more about it here. The t-online shopping cart comparison was unable to clearly determine how this affects shopping in the supermarket. The butter in the September shopping cart was on offer at the time. What is noticeable, however, is that the packaging shrunk from 250 to 200 grams in October, but, as has been the case since the April survey, is regularly sold for 3.39 euros. Extrapolated, that would now be 4.24 euros for 250 grams of butter.
In total, the products in the t-online shopping cart cost 87.93 euros in October. When surveyed last month, you still had to pay 87.73 euros for the same products. This means that the shopping cart has become 20 cents more expensive.
This 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 in its calculations, and also from areas other than food. The government statisticians also examine changes in prices for energy and services such as visits to the hairdresser.
For the survey: Since 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.
Interview between Time.news Editor and Dr. Anna Müller, Economist Specializing in Consumer Prices
Time.news Editor: Good morning, Dr. Müller! Thank you for joining us today. The latest reports indicate that inflation in Germany has seen a noticeable uptick, with consumer prices rising by 2% in October compared to last year. Can you provide some insights into why we’re seeing this shift after the low inflation rate of 1.6% in September?
Dr. Anna Müller: Good morning! It’s a pleasure to be here. Yes, indeed, the rise in inflation from September to October has caught many by surprise. The previous decrease in September may have led to some optimism about stabilizing prices, but several factors contributed to the uptick. A combination of seasonal demand, supply chain disruptions that are still affecting certain goods, and fluctuating commodity prices likely played significant roles.
Time.news Editor: Interesting! The article mentions that food prices have risen by 2.3%. What does this mean for the average shopper at the supermarket? Are there particular products that stand out in this price increase?
Dr. Anna Müller: Absolutely! Food prices are a significant aspect of consumer sentiment. In the t-online analysis, they reported specific changes in the prices of food items. For instance, while the price of potatoes fell dramatically by 20% from September to October, we saw iceberg lettuce prices soar by 34%. This inconsistency highlights how certain products are more vulnerable to market dynamics. For consumers, this means that while some staples may be cheaper, others, like fresh produce, may impact their grocery bills significantly.
Time.news Editor: It’s fascinating how different food categories can behave so differently. Can you elaborate on the decline in potato prices and the expected record harvest in 2024?
Dr. Anna Müller: Certainly! The sharp drop in potato prices can be attributed to the abundant harvest forecasted for the coming year. With a record harvest of about 12.7 million tonnes expected, an increase of 9% compared to last year, supply is high. This obviously leads to a lower price at the checkout, benefiting consumers. In contrast, crops that are facing challenges due to weather conditions, pests, or logistic issues might see prices rise.
Time.news Editor: Speaking of rising prices, there are products that seem to be continually increasing in cost. The report highlights butter as the most expensive item currently. What drives these persistent price increases?
Dr. Anna Müller: Butter prices are particularly volatile due to a variety of factors. High demand, reduced milk production in certain regions due to adverse weather conditions, and increased feed costs for dairy cows can all drive prices up. Furthermore, butter has both domestic and international markets, meaning global shifts in demand can also affect prices. For shoppers, this translates to a heavier burden when budgeting for grocery bills, especially if items like butter are integral to their cooking and baking routines.
Time.news Editor: With fluctuations in food prices and the cost of living rising, what advice would you give to consumers looking to manage their grocery budgets effectively?
Dr. Anna Müller: My key advice would be to stay informed and flexible. Consumers should keep an eye on price trends for products they regularly buy and be willing to substitute based on what’s currently affordable. Also, considering seasonal produce or buying in bulk can help mitigate the effects of price volatility. Planning meals around prices rather than sticking to rigid shopping lists can also lead to savings.
Time.news Editor: Thank you, Dr. Müller! Your insights are incredibly valuable, especially as we are navigating these economic shifts. We appreciate your time today and look forward to hearing more from you in the future.
Dr. Anna Müller: Thank you for having me! It’s been a pleasure discussing these critical topics.