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Rising food costs continue: prices climb higher than anticipated on shopping trips

Germans continue to experience a surge in consumer prices, with food expenses posing a significant burden on households.

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Prices of consumer goods increase once more, with food items leading the charge - a trend more...
Prices of consumer goods increase once more, with food items leading the charge - a trend more persistent than initially anticipated.

Rising food costs continue: prices climb higher than anticipated on shopping trips

Inflation rates in Germany have remained high, with the Federal Statistical Office reporting a consistent 2.0% rate for both June and July. This persistent inflation has been a concern for economists, with Commerzbank chief economist JΓΆrg KrΓ€mer commenting that it is more persistent than expected.

The higher inflation rates have reduced the purchasing power of people, meaning they can afford less for a euro. One factor contributing to this is the waning price-dampening effect of energy prices. However, the impact of inflation on other sectors of the economy was not specified in the provided text.

In the second quarter, wages rose by 4.1%, resulting in a real wage increase of 1.9% compared to the previous year. This wage increase has helped to offset some of the losses in purchasing power, particularly from 2022 and 2023.

The core inflation rate, which excludes food and energy prices, has been at 2.7% for the past three months. This suggests that the increase in food prices, a burden for households in Germany, has played a significant role in the overall inflation rate. The inflation rate for food prices was not specified in the provided text.

Consumer prices in Germany increased by 2.2% compared to the previous year in August. Prices rose by 0.1% from July to August of the current year. Despite these increases, economists predict inflation rates above the two-percent mark for the coming months in Germany.

Thomas Gitzel, chief economist of the Liechtenstein VP Bank, shares this prediction, stating that he does not expect a significant decrease in the inflation rate. He further adds that food prices could potentially rise again, adding to the overall inflation rate.

The prolonged persistence of inflation has been a topic of discussion, with no specific information available about when Commerzbank's CEO, Bettina Orlopp, predicted this trend. Despite these challenges, it is clear that inflation remains a significant concern for the German economy, and efforts are being made to offset its impact on the purchasing power of the people.

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