5.5 percent increase
Inflation weighs the most on couples
01/21/2022, 11:40 am
The inflation rate in Germany is higher than it has been for 30 years. But not everyone is equally affected by the rising consumer prices. According to a study by the IMK Institute, it mainly affects families and couples. Households of single people fare slightly better.
According to a study, high inflation in Germany is currently having the greatest impact on families with children and middle-income couples without children. Measured against a basket of goods that is usual for this type of household, consumer prices rose by 5.5 percent in December and thus more than the general inflation of 5.3 percent, as the IMK Institute of the Hans Böckler Foundation, which is close to the trade union, explained. According to this, single people with low incomes have the lowest household-specific inflation rate of 4.4 percent in comparison.
“Roughly speaking, it can be concluded that inflation is currently not disproportionately affecting households with lower incomes,” summarized IMK expert Silke Tober. However, the comparatively lower inflation rate for single people with low incomes proves to be a double-edged sword. Because these households are severely affected by the strong price increases for food and especially household energy. These are basic necessities, the consumption of which they could hardly reduce. The fact that their “perceived” inflation is currently below average “is primarily due to the fact that they cannot afford other goods and services anyway, the prices of which have also risen sharply.” This applies above all to petrol and other expenses for the car and for travel.
Highest inflation rate in 30 years
In December, inflation in Germany rose to 5.3 percent, the highest level since 1992. The IMK determined the typical consumption patterns for different households on the basis of the Income and Consumption Sample (EVS) from the Federal Statistical Office. According to the study, it is thus possible to weight who spends how much on certain goods and services – from food to rent, energy and clothing to cultural events and package tours. From this, the experts then calculated the household-specific price development.
For singles with high and middle incomes, at 4.7 and 5.0 percent respectively in December, this was slightly below the general price increase. In family households with two children and low income, it was 5.3 percent, in families with higher income 5.4 percent. “We expect inflation to weaken noticeably again in the current year,” explained Tober.