The retail trade in Germany once again recorded a decline in sales in March. According to the provisional results of the Federal Statistical Office, the companies turned over 2.4 percent in real (price-adjusted) and 1.3 percent less in nominal terms than in February. Compared to the same month of the previous year, retail sales fell by 8.6 percent in real terms and, including the sharp rise in prices, by 0.2 percent. “The difference between the nominal and real results reflects the significantly increased price level in retail,” said the statisticians in Wiesbaden on Tuesday
In view of the high inflation, sales of groceries fell significantly. It fell by 1.1 percent in real terms compared to the previous month. Within a year it shrank by ten percent. According to the statisticians, this was the sharpest decline in sales compared to the same month last year since the time series began in 1994. “One reason for this decline is likely to be the food prices, which rose again significantly in March 2023,” it said. With an increase of 22.3 percent compared to Food price inflation was three times higher than the overall inflation rate as of March 2022. Nominal sales of food rose by 4.7 percent in March 2023.
Persistently high inflation is having a negative impact on the purchasing power of consumers in Germany. People can afford less for one euro. That dampens consumption. (dpa)