WTF? Food prices expected to raise up to 50% in German supermarket.

[Poker Player]

I am not sure that this is not a fake news, because it is in several digital media but not in any of the big ones. In any case, there is inflation all over Europe, and there will continue to be, but such a rise in supermarkets, if it materializes, should make the ECB think about what to do, since its main mission is to control inflation, and lately it had been a bit lenient with it.

'...the German trade association said that before the Ukrainian war, prices had already risen by 5% in Germany "for the entire product line" because of rising energy costs. Moreover, "the second wave of price hikes is coming, definitely by double-digit percentages." Aldi also expects German food prices to rise by 20% to 50% in the next few weeks. According to a survey recently published by the Ifo Institute, almost all German food retail companies plan to increase prices. "Germany's food supply is guaranteed for the foreseeable next year," said the German Agricultural Organization. "But beyond that time frame, it is difficult to make predictions. "'

Source: German food prices will rise sharply, Germans have to face a more impoverished life.

The problem with inflation is that there is no short-term solution to it. You have to have at least a medium-term vision to fight it and it cannot be based only on withdrawing liquidity from the market as the ECB plans to do. Energy policy also plays an important role, and the solution proposed to stop depending on Russian gas is more expensive.

With respect to the ECB, another problem that may be encountered is that of a catch-22 situation. After many years of giving massive amounts of drugs to the junkie, you cannot withdraw all the drugs at once, or the junkie will go cold turkey. Let's see how they do it without a major crisis.

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[avikz]

Not just Germany, rather many other countries in EU are facing the same issue. EU countries are one of the major importers of Russian oil. Due to the war, many countries have reduced the size of such import which led to fuel price increase. Along with fuel price increase, the price of commodities are going up because the transport cost is going up. Then it comes to inflation which is reducing the "purchasing power parity" of EURO which is again eating into the price of the commodities.

It can be solved if they are able to import oil from any other country. But US has imposed sanctions on Venezuela where they could have got cheapest oil. If I look at the previous data (2019), Russia accounts for roughly 27% of oil imports for EU. When such a big chuck of an import dries out, it pushes the price of everything dependent on oil. EU should stop being the puppets of US and UK. One has to remember that these two countries are responsible for most number of wars in the history of humankind.

[davis196]

20 to 50% seems pretty exaggerated.The food price growth will be more like 10-25%.
The European central bank must stop with the quantitative easing,but this might create big problems with the government debt of southern European counties like Greece and Italy.
Germany will have to re-launch it's nuclear power plants,in order to reduce the energy production by gas power plants.This will take some time.
I really hope that the war in Ukraine ends before June,so that Russia and Ukraine will be able to export grain and foods to Europe(if the western sanctions get removed).
The high levels of inflation in Europe and North America will continue in the next few years.

[bakasabo]

This is expected. Ukraine and Russia were supporters of cheap raw materials for production, fertilizers and etc. The growth of production cost will increase in no time. Add increased cost of logistics and 50% of food prices increase will be a beginning.

I am not from Germany, but I already feel how prices increased. My shop receipt is same length, but the its total has increased significantly.

I think this is all due to fuel price increase. Everyone supporter, producer and intermediary add their little % to cover losses, and in total we have 50% raise.

[NeuroticFish]

After the governments have pumped shitloads of money to attenuate the problems created by COVID and lock down to economies, now it should have been the time to rise the taxes and partly cover that.
In 2020 and 2021 a lot of crops were not harvested because of the lack of cheap workers from Eastern Europe.

Now gas and oil prices rose a lot (and consequently electricity too) and we don't know whether they'll stop rising in the near future (the supply chains may have to be changed and rebuilt to avoid Russia).
More expensive (especially because of the green certificates) coal based electricity will be produced for the next few years even in the developed countries.
Everything that heated, produced automatically and or/transported will be more expensive. And it's very difficult to assess by how much. Not yet.

In the eastern countries the prices did and do rise. If this was not happening yet in Germany, it only means the supermarkets had longer term contracts with fixed prices and the suppliers have worked at a loss (which they will recover now).

So don't panic, still, expect tougher times.



Will EU decrease for a while the price of the green certificates? That could help, but I'm not sure it's something we'd really want. And neither them...
But... do you expect solutions from... ECB? What solutions? More paper money?! That happens anyway, since instead of the planned reduction of inflation, will be an even bigger rise of that.

[Moneyprism]

Inflation like this is predictable, because the Ukraine war has disrupted the global supply chain and also increased global oil and gas prices ... not to mention some Russian decisions which caused a significant impact on the European economy

[Charles-Tim]

The problem with inflation is that there is no short-term solution to it.

There is no solution the government will provide you, one of the purpose the government created fiat is to have control on it, the control in term of price increase and decrease has been on the later side, the economy can not always favour, the government would have no option than to devalue their own fiat currency.

Inflation do not matters to those that have businesses, as government devalue fiat, they increase the price of goods and services they are offering people to buy or demand for. Only poeple that can lose in such situation are people that are holding fiat, once the government devalue the fiat, the money in fiat is devalued, some people would have fiat in their savings, or fixed deposit account.

The solution to this problem has been existing since ages, even before fiat was created, the solution are what that have intrinsic value that price would be increasing as people are demanding for it but decreasing as people are selling it, going for the what people are adopting (buying) than selling it, so the price increase in long term. In this digital era, bitcoin is an example. Why hold fiat, why not just hold bitcoin, gold or reputed stocks and of the likes which are perfect solutions. Fiat should just be for spending while appreciative assets like bitcoin for holding.

It can be solved if they are able to import oil from any other country. But US has imposed sanctions on Venezuela where they could have got cheapest oil.

Inflation has started in EU countries before Russia invaded Ukraine, but we can not say the war do not have impact on the increasing inflation. It can only be minimize if EU are importing oil and gas from other countries successfully and getting not dependent on Russian Imports.

If I look at the previous data (2019), Russia accounts for roughly 27% of oil imports for EU.

According to recent data I got from BBC that Russia won't cut off gas supplies yet in rouble payment row, Russia is importing 40% of EU gas and a third (1/3) of oil.

[Poker Player]

After the governments have pumped shitloads of money to attenuate the problems created by COVID and lock down to economies, now it should have been the time to rise the taxes and partly cover that.

I would prefer a reduction in public spending, as raising taxes, especially in this context, further stifles the productive sectors and consumption.

But... do you expect solutions from... ECB? What solutions? More paper money?! That happens anyway, since instead of the planned reduction of inflation, will be an even bigger rise of that.

No, it is not that I expect much from the ECB, and in any case I would say the opposite, that what it has to do now is to print less and buy less, not more, but if they see that there is a crisis, or a decrease as they like to call it, they are immediately tempted to give drugs to the junkie again.

Inflation do not matters to those that have businesses, as government devalue fiat, they increase the price of goods and services they are offering people to buy or demand for. Only poeple that can lose in such situation are people that are holding fiat, once the government devalue the fiat, the money in fiat is devalued, some people would have fiat in their savings, or fixed deposit account.

I would specify and say that only successful businesses are able to beat inflation by passing it on to their products and services and being able to continue at a rate of sales that gives them a net profit. Inflation affects businesses and can take a lot of them down with it. Think of companies that have long-term contracts for a set price and now have to pay much more for raw materials, for example.

[Leviathan.007]

20 to 50% seems pretty exaggerated.The food price growth will be more like 10-25%.
The European central bank must stop with the quantitative easing,but this might create big problems with the government debt of southern European counties like Greece and Italy.
Germany will have to re-launch it's nuclear power plants,in order to reduce the energy production by gas power plants.This will take some time.
I really hope that the war in Ukraine ends before June,so that Russia and Ukraine will be able to export grain and foods to Europe(if the western sanctions get removed).
The high levels of inflation in Europe and North America will continue in the next few years.

Talking about increasing inflation create and raising the price of food is not just about Germany or some a few countries, recently due to the inflation rate we could expect this situation on the other hand since the crisis started in Europe and especially Ukrnine, there were some issues with food exports and from Ukraine to the other countries in Europe, it seems like due to these factors the food prices and the inflation rate will raise never higher in the Europe and America.

[aprilnot]

this has been predicted by experts. but 50% is a very big thing. Inflation and the impact of the Russia-Ukraine war are the main reasons why commodity prices are rising high. And Russia plans to use crypto/ruble for its energy export payments. this becomes another problem, and is expected to make the price of necessities more expensive. This problem also occurs in European countries, especially those that import energy from Russia.

[TheNineClub]

Not just Germany, rather many other countries in EU are facing the same issue. EU countries are one of the major importers of Russian oil. Due to the war, many countries have reduced the size of such import which led to fuel price increase. Along with fuel price increase, the price of commodities are going up because the transport cost is going up. Then it comes to inflation which is reducing the "purchasing power parity" of EURO which is again eating into the price of the commodities.

Not just Germany and the EU, but the biggest issues are in countries that rely vastly on grain imports from Ukraine and Russia, Egipt and Yemen for instance. They are facing enormous humanitarian disasters that seem like they can't be dealt with just like that. So whatever we feel here in Europe, they will feel it tenfold. And it's not just because of transport, there is literary nothing being produced from Ukraine and there is an export embargo on Russian grains and there's just no food available, Even if the war stops tomorrow, Ukraine grain production will not resume and it's basically, in a best-case scenario, dead for this season. That is a huge issue.

[Gozie51]

The war between Ukraine and Russia that has caused much sanctions to Russia and Russia fighting back on the sanction has exposed EU to her dependency rate on Russian Oil and her gas too. I read it is affecting transportation in Germany and this I think is a direct reason for the rise in goods both from supermarket. Inflation is usually caused by high rate of transportation because businesses will want to gain extra from the price of transportation of getting their goods for sale.

[Wind_FURY]

Start saving some of your monthly salary in Bitcoin sers. The path to hyperinflation might be starting to show itself. This situation is what motivated Satoshi to code Bitcoin. For plebs like us to have a hedge in case the cabal behind the monetary system makes a fatal mistake.

[Ozero]

Inflation like this is predictable, because the Ukraine war has disrupted the global supply chain and also increased global oil and gas prices ... not to mention some Russian decisions which caused a significant impact on the European economy

When Putin and his entourage became convinced that they would not be able to capture the entire territory of Ukraine, the Russian military was ordered to kill the civilian population of Ukraine, as well as destroy the infrastructure of this state, including to destroy its economy. Therefore, rocket and bomb strikes were carried out not only on military, but also on civilian objects, warehouses, oil depots, which casts great doubt on the sowing campaign in Ukraine. In addition, the occupiers steal grain and agricultural machinery. Ukraine was one of the significant exporters of agricultural products to Europe and other countries of the world, and Russia's aggression disrupted all this. In particular, it has a detrimental effect on Russia itself. Trade sanctions apply to all parties. Therefore, much less will enter the world food market this year and this will cause a significant increase in their prices.

[xSkylarx]

How much was 50% inflation? I know Germany is a first world country, but there are still poor people in that country. How do they manage to cope with this big rise? Here in our country, we do have a 3.7% inflation rate as of the moment, but we really feel it and, as my self is struggling, how much more than 50%? Prices here rise, and most of us, especially the poor, are unable to cope. Imagine I asked some of the kids who live nearby our house, we know they are poor about how they are. They just stated that they only eat twice a day! They skip breakfast just to save food, and then they eat lunch, and the left-overs are for dinner they are hoping that the price will go down they are always mocking to government but I agree that government has no short term effect on this! unless they are given money or food.

[Lucius]

I think it has been said many times that we will have to pay for everything that has been going on for almost 2 years, and some have obviously imagined that there is something like a free lunch - but that lunch has now come to fruition, with interest. The war has only added fuel to the fire and is not the main reason for inflation, although some are trying to portray it as the main reason for this price rage.

I have noticed that some things have become more expensive, especially sunflower oil, which is 30-60% more expensive depending on the producer, although the rise in food prices will only be felt in the coming months because producers are facing higher prices for fertilizers which is measured in hundreds of percent upwards. I grow vegetables in my garden, and the land for seedlings I use is 100% more expensive than last year, not to mention everything else.

As far as the European Central Bank is concerned, centralization and the common currency are now coming to the fore, all eurozone members are in the same problem - while those countries that have their own currencies still have more room for maneuver.

Although this is not the rule for all non-eurozone members, for example, the price of 1 liter of gasoline in Hungary is € 1.28, while in Italy it is € 1.87 and in France even € 2.00. (data for March 28).

https://www.tolls.eu/fuel-prices

[SirLancelot]

It can be solved if they are able to import oil from any other country. But US has imposed sanctions on Venezuela where they could have got cheapest oil. If I look at the previous data (2019), Russia accounts for roughly 27% of oil imports for EU. When such a big chuck of an import dries out, it pushes the price of everything dependent on oil. EU should stop being the puppets of US and UK. One has to remember that these two countries are responsible for most number of wars in the history of humankind.

I have also had this same thought of whether the EU should consider making their imports of gas from other countries that are known to be major suppliers of gas around the world. Based on research there are other countries that can as well supply gas to the EU, and these countries are as follows: US, Qatar, Algeria, Nigeria, Canada, Australia and Norway.

So, what I’m trying to know is whether the EU has been considering these other countries to become there major gas suppliers?  Currently, being cut off from Russian supply has been quite damaging to the economy for the countries in the EU.

[Ryu_Ar1]

Well maybe now not only in Germany but almost all countries are doing the same thing now.
In the country I live in now prices have skyrocketed in several other sectors such as fuel and food. Even now, the existence of oil for frying in my country has become scarce now and this indirectly makes the price spike higher and quite expensive.

[ShowOff]

Mate, this is not only happening in Germany but I think we have experienced it all along in Indonesia. Unbearable inflation has made it difficult for millions of people exacerbated by financial conditions that do not improve. Economic growth is not commensurate with the inflation rate that occurs so we really have to spend more money to buy something in the market.

We don't know how to get through it all without any problems especially when financial conditions are so unfavorable. This is truly an unimaginable condition a few years ago where almost all basic necessities are becoming more expensive compared to last year. Expletives are meaningless, they never improve things. We really need economic stability at this time.

[stepwilli]

Well, the reason has already been stated. It is because of Rising energy cost. The current situation has really put a lot of countries in difficulties. From 2020 pandemic to this years war between Russia and the Ukraine has really messed up a lot of things and lead to more inflation for a lot of countries due to the decisions that were left for them to make.

The one problem with inflation is that whenever it strikes, it is difficult for things to go back as it used to be. Sometimes the effect is a permanent one and it just continues, because there wouldn’t be a solution to the problem.