Germany ‘price hike’ : Food retail chains will raise prices by 20-50% from Monday

2022-06-07 0 By

The news that German retailers will raise food prices on Monday has sent shockwaves through Germany’s most inflation-fearful citizens as they face their fiercest inflation since the second world war.Meat, sausage, butter……Food prices in Germany will rise again from April 4th.Reuters reports that German retail chains will see explosive price increases of 20 to 50 percent.Germany’s already high inflation rate is once again on the rise as the conflict between Russia and Ukraine tightens supplies.According to a recent survey published by IFO, a Munich-based economic research institute, almost every company in the German food retail industry is planning to raise prices.This followed the latest figures from the Federal Statistics Office, which showed the CPI surged 7.3 per cent year on year in March, up from 5.1 per cent in February and the highest level since 1981.That followed a 25.9 per cent year-on-year jump in February, the highest since December 1948.Before the russia-Ukraine conflict, the price of gas, gasoline and other products had risen by about 5 percent due to soaring oil and gas prices, neosnabruck newspaper quoted Josef Sankjohannse, president of the German retail association, as saying on Friday.And the outbreak of the Conflict between Russia and Ukraine hit The German economy and supply chain more and more seriously, and another wave of price rises is coming.We will soon see the impact of the conflict reflected in the price tags of all supermarkets, he said.The first German retail chains have already raised prices, and others are likely to follow.With a second wave of price increases on the horizon, which are certain to reach double digits, consumers should brace themselves for higher prices for everyday items and groceries.Germany’s big retail chains, including Aldi, Edeka and Globus, have recently announced that they will be forced to raise prices on the food they sell.’Since the outbreak of the Russia-Ukraine conflict, we have seen a jump in purchase prices, which we have not experienced before,’ an Aldi spokesman said Friday.Food items such as meat and butter will be significantly more expensive from Monday as suppliers increase prices.Two weeks ago, Aldi raised prices on about 160 items.A week ago, Aldi raised prices on about 20 more items.Other supermarkets quickly followed suit.But industry experts do not expect a shortage of products on the shelves anytime soon.Consumer fears of food shortages have long been apparent.German consumer demand for some foods has increased significantly since the outbreak of the Conflict between Russia and Ukraine, according to data released by the Federal Statistics Office.In the second week of March, for example, consumer demand for cooking oil more than doubled from September, while demand for flour tripled.However, industry insiders do not expect food supply bottlenecks in Germany in the short term.Joachim Lukewede, president of the German Agricultural Association, said food supplies are predictable for a year, but beyond that it becomes unpredictable.”I spent €70.34 a week on shopping,” Hannelore Groning, an 82-year-old woman in Dresden, said recently after a supermarket trip.Although it was due to rise again next Monday, things have already gone up a lot: tobacco from €19.35 to €19.95 and eggs from €1.59 to €1.99.I can’t go to the opera anymore, I have to save money!According to the Hans-Bockler-Stiftung Foundation, ordinary germans and their families are being hit hardest because they are particularly dependent on cars, and fuel costs are huge for them.The fund expects lower-income earners to be increasingly affected by the price rises in coming months.Rising prices are hitting end consumers hard, with nearly half of Germans worried about being able to maintain their standard of living, according to IFH Koln, a cologne-based retail research institute.* Disclaimer: The content of this article is for reference only, does not constitute investment advice * Risk tip: the stock market is risky, the market should be cautious