High price increases for private households
The high average increase in consumer prices of 6.9 percent weighed on private households in 2022. This is particularly evident in the food sector: “In 2022, private households consumed 4.4 percent less food and non-alcoholic beverages than in the previous year 7.8% more money for this,” according to the Federal Statistical Office. Food and non-alcoholic beverages accounted for 11.5 percent of total consumer spending. In the two previous years, the proportion was almost 12 percent, due to corona restrictions in the catering trade.
Overall, consumer spending by private households was 10.7 percent higher than in the previous year at the respective prices. Price-adjusted consumer spending increased by 3.4 percent, which illustrates the major impact of the high price increases.
High spending on energy
As a result of the war in Ukraine, consumer spending by private households rose sharply by 19.3 percent and 13.9 percent for gas, respectively. Price-adjusted consumer spending on electricity and gas fell by 0.5 percent and 26.4 percent respectively in 2022 compared to the previous year, which means that consumption was lower than in the previous year. Consumer spending on fuel at current prices also increased by 29.8 percent in 2022 compared to 2021. Adjusted for price, these increased by 1.4 percent.
Due to the discontinuation of the corona measures from last year, consumer spending on services also rose sharply. Many people wanted to catch up on trips and restaurants that had been postponed. Price-adjusted consumer spending in the services sector increased by 8.3 percent in 2022 compared to the previous year.
Savings rate falls compared to the previous year
According to the Federal Statistical Office, the disposable income of private households increased by seven percent in current prices and thus less than consumer spending. The savings rate of private households, which corresponds to the percentage of disposable income that is saved, fell by four percent to 11.4 percent. The savings ratio thus approached the pre-crisis level again.
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