Berlin (Reuters) – Around 85 percent of Germans are afraid that inflation will depress their prosperity in the long term.
This emerges from a survey published on Wednesday by the Allensbach Institute for Demoscopy (IfD). “The majority also expects a long-term loss of prosperity,” said IfD director Renate Köcher. 70 percent assumed that the quality of life would decrease in the next ten years. “The population’s catalog of concerns is shaped by the current crises – by securing the energy supply, the Ukraine war and inflation,” it said. High inflation is the biggest concern. Around 83 percent are very worried about rising prices, especially for electricity and gas.
Inflation at ten percent – apart from October at 10.4 percent – is currently the highest it has been since 1951 and is reducing the purchasing power of consumers. According to the survey, the weaker social strata, which have little financial leeway, are particularly affected by this at 81 percent. According to this, 63 percent of this group feel severely restricted by inflation in their everyday lives. For people with a so-called high socio-economic status, this only applies to 23 percent. “Inflation will keep us busy for a long time,” said President Achim Wambach of the Leibniz Center for European Economic Research (ZEW). “Companies will adjust their prices and collective bargaining partners will adjust wages, some overshooting is inevitable.” Monetary policy and fiscal policy are required to reduce aggregate demand in order to reduce price pressure.
According to the survey, around 37 percent are very concerned and 21 percent are very concerned that their savings will lose value due to inflation. In addition to state aid, the robust labor market is also helping to stabilize the mood. Because only twelve percent are afraid of losing their job. In 2021 it was still 18 percent, in 2013 even 25 percent.
A good half (54 percent) of those surveyed assume that certain measures could slow down the price surge. Around 85 percent see politics as important here and a third the European Central Bank (ECB). About three-quarters are in favor of the state lowering taxes on certain products and 68 percent are in favor of a lower value-added tax. According to the survey commissioned by the lobby group Initiative Neue Soziale Marktwirtschaft (INSM), around two-thirds of people thought it would make sense for the Cartel Office to check particularly high prices.
The traffic light coalition has put together several relief packages since the Ukraine war and is planning a price brake for electricity and gas. Nevertheless, 76 percent of those surveyed say that politicians must do more to combat rising prices.
(Report by Klaus Lauer; – If you have any questions, please contact our editorial team at [email protected] (for politics and the economy) or [email protected] (for companies and markets).)