MUNICH (dpa-AFX) – The retail trade – especially with food – has fewer delivery problems, but customers are holding back. In a survey by the Ifo Institute published on Monday, 77.7 percent of food retail companies reported delivery bottlenecks in March, 8 percentage points fewer than in February. In retail as a whole, the value fell by 4.5 points to 49 percent.
“Easing supply problems should help to slow down food price increases over the course of the year,” said Ifo expert Patrick Höppner. Another development could also contribute to this: In the first quarter, 28.4 percent of food retailers reported weak demand. That was slightly more than in the fourth quarter of 2022. “Food retailers are feeling that consumers have changed their shopping behavior as a result of the sharp rise in food prices,” said Höppner. “Customers tend to buy fewer groceries and are also becoming more price-conscious when choosing them.”
Significantly higher food prices are currently a key driver of inflation in Germany. According to provisional figures from the Federal Statistical Office, in March they rose by 22.3 percent compared to the same month last year, while consumer prices increased by a total of only 7.4 percent./ruc/DP/zb