The consumer climate in Germany has fallen to a record low due to the consequences of the Ukraine war. The consumer research company GfK determined an index value of minus 27.4 points for July. That is 1.2 points less than in June and, according to GfK, an all-time low. “The ongoing war in Ukraine and disrupted supply chains are causing energy and food prices in particular to explode and making the consumer climate more gloomy than ever,” explained GfK consumer expert Rolf Bürkl on Tuesday.
Above all, the almost eight percent increase in the cost of living depressed the mood, he said. Purchasing power is melting away. The hope that the savings accumulated during the pandemic would be converted into purchases will probably not be fulfilled. “If private households have to pay significantly more for energy and food, there are correspondingly fewer financial resources available, especially for larger purchases,” says the GfK statement. As a result, the domestic economy will also suffer in the coming months.
Bürkl called on the European Central Bank to adopt a moderate monetary policy. Inflation must be pushed back. However, the economy should not be stalled by too large jumps in interest rates. (dpa)