GfK reveals fear of inflation
War spoils Germans’ mood to buy
03/29/2022, 09:26 am
The war in the Ukraine and the increased prices for energy and food are severely restricting the Germans’ willingness to buy. Many are very concerned about the prices. According to GfK, the consumer climate is therefore falling significantly.
The economic consequences of the war in the Ukraine and the fears of inflation that have been fueled even more by the people in Germany are poison for the mood to buy. The consumer climate after the Russian attack on Ukraine virtually collapsed in March, according to the monthly consumer climate study by Nuremberg-based research company GfK. “In February, there were still high hopes that consumer sentiment could recover significantly with the foreseeable easing of the restrictions imposed by the pandemic,” said GfK consumer expert Rolf Bürkl. “With the start of the Ukraine war, however, this suddenly vanished into thin air.”
The growing uncertainty and the consequences of the sanctions against Russia have driven up energy prices in particular. This is having a noticeable impact on general consumer sentiment, said Bürkl. “Due to the sharp rise in prices for gas, heating oil and petrol, consumers see their purchasing power melting away.” With regard to the income expectations of Germans, the lowest value since the financial crisis was measured.
Nine out of ten Germans are very or very concerned about energy prices, according to a special GfK survey on the consequences of the Ukraine crisis. When it comes to food prices, 80 percent of people are very or very worried. The propensity to buy has not yet collapsed, but has reached its lowest value since April 2020 – the peak phase of the first corona lockdown.
“There can only be a sustained recovery in the consumer climate if there is a quick ceasefire followed by peace negotiations. Then the domestic economy will again make an important contribution to overall economic development due to the falling uncertainty and the easing of the restrictions caused by the pandemic would also have a positive impact can have an effect,” stressed Bürkl.