Study: High food prices are a burden for the majority of Germans

Almost one in three people have less money per month than a year ago

06-Nov-2024

High inflation posed major challenges for households in Germany last year. This applies in particular to food price increases. 52% of Germans felt the greatest burden as a result. This was followed by electricity (35%) and heating (32%). Households with a net income of less than 2,000 euros per month were affected more than average by price increases for basic necessities: six out of ten low-income earners felt most burdened by high food prices, four out of ten by electricity costs. These are the findings of the representative "TeamBank Liquidity Barometer" study.

Inflation has also contributed to the fact that 30 percent of Germans now have less money at their free disposal each month than a year ago. Here too, low earners are more affected: 41% of those with a net household income of EUR 1,000 to 2,000 have less money each month, compared to 36% of those with an even lower income. In contrast, only 17% of households with a net income of 4,000 euros or more have less money available.

Clear majority use financing

Financing is a popular way of being able to afford something despite financial constraints. 73 percent of Germans have already made use of at least one type of financing. In first place is purchase on account, which 38% have used at least once. This is followed by overdraft facilities at 29 percent. In third place are installment purchases and loans for larger purchases, such as real estate or car financing, with 28 percent each. Financing is a matter of course, especially for high earners with a net household income of 4,000 euros or more. Almost half of them (46%) have already taken out financing. Among low-income earners with a net household income of less than 1,000 euros, the figure is only 13%.

Germans are very responsible when it comes to using financing. 56 percent only use them in exceptional cases. A further 30 percent worry about not being able to meet their payment obligations during the term of the loan. This even applies to 38% of respondents with a household income of between 1,000 and 2,000 euros. 27% reject all forms of financing in principle, while the figure is as high as 34% among low earners with a net household income of less than EUR 1,000.

"Financing is often indispensable in order to realize investments. A permanently available credit line can provide the flexibility that many consumers want. The decisive factor is that it matches their own financial possibilities and need for security," says Christian Polenz, CEO of TeamBank AG.

Note: This article has been translated using a computer system without human intervention. LUMITOS offers these automatic translations to present a wider range of current news. Since this article has been translated with automatic translation, it is possible that it contains errors in vocabulary, syntax or grammar. The original article in German can be found here.

https://www.yumda.com/en/news/1184832/study-high-food-prices-are-a-burden-for-the-majority-of-germans.html