Heating oil cheaper, gas much more expensive
Consumer prices are drifting far apart
By Max Borowski
6/13/2023, 6:02 p.m
The price of sugar has exploded while that of butter has plummeted. While heating with oil has become significantly cheaper, gas customers are paying more and more. The prices for goods and services, some of which are similar, are drifting apart to an unusual extent.
Inflation in Germany as a whole is calming down. However, this is not the case for individual goods and services. On the contrary: The Federal Statistical Office reports wild jumps in some prices – both upwards and downwards. The inflation rate, which summarizes the change in all consumer prices, fell further in May to 6.1 percent. In April, the rate was still 7.2 percent. In a month-to-month comparison, i.e. April 2023, consumer prices even fell slightly by 0.1 percent in May. In the case of individual products – even within product groups that usually develop in parallel – there are large, sometimes contradictory price movements.
Contrasting developments are striking, for example in energy prices. The Federal Statistical Office reports a moderate price increase of 2.6 percent year-on-year for this category, which is important in the inflation statistics. In fact, depending on the energy they use for heating, consumers experience very different developments: natural gas In May 2023, for example, electricity was more than 40 percent more expensive than in the same month last year, and electricity prices are still well above the previous year’s level. fuel oil was, on the other hand, more than five percent cheaper than a year earlier, while fuel prices have literally plummeted: Premium gasoline cost twelve percent less in May that diesel price fell by more than 20 percent.
Food prices diverged even further in May. Overall, food prices were almost 15 percent higher than in May 2022, even if they fell slightly month-on-month. In the case of individual products, however, contradictory developments can also be seen here. The most blatant increase among the staple foods can be seen at Sugar, which rose 70 percent year-on-year. Also the prices for Dairy products such as cheese and quark rose sharply by almost 30 percent. At margarine or vegetable fat prices rose at a similar rate. butter on the other hand, prices fell by a good 23 percent.
Utilities have announced price cuts
There were also opposing developments in services. So they moved air fares with a plus of 28 percent. train tickets local transport, on the other hand, was only 0.6 percent more expensive, combined tickets for bus and train were even 22.9 percent cheaper. Behind the development in public transport is the Deutschlandticket, which was introduced in May and enables the use of local transport nationwide for a standard price of 49 euros. On the other hand, prices rose in long-distance transport and especially in aviation.
When it comes to food and energy prices, there are other reasons behind the diverging prices. Apparently, after last year’s sharp price hikes that angered many consumers, the dominant retailers have started price competition, first on butter. Some other foods such as vegetables, which had become much more expensive in winter, have recently become cheaper again, even if the prices are still above the previous year’s level. However, according to experts, it is not yet clear whether this is the beginning of a general trend reversal in food prices or whether inflation will continue.
The development of energy prices is clearer: The prices for heating oil, petrol and diesel fell again relatively quickly for consumers, in line with developments on the world market. On the other hand, for natural gas and electricity, most of which are offered in the form of long-term contracts, consumer prices move with a significant lag compared to wholesale prices. In the past year, for example, the historical price shocks in natural gas and on the electricity exchange reached most consumers with a delay of several months. However, several utility companies have announced that they will pass on their purchase prices, which have meanwhile fallen again, to their customers.