Agency Report –
Cologne – German residents believe inflation to be much higher than the official rate, a study found on Wednesday.
A survey carried out by the German Economic Institute in December said two-thirds of consumers believe food prices rose “sharply” in the past year.
Figures from the Federal Statistical Office show that food prices were actually up by an average of just 1.9% in 2024.
“Prices rose sharply in 2023, but not in 2024. In the perception of consumers, however, they have once again risen significantly,” said the study’s author Matthias Diermeier. “Many do not realize that inflation has slowed down.”
Respondents estimated the general inflation rate at 15.3%, far higher than the actual rate of 2.2%, suggesting that the wave of high prices following the coronavirus pandemic and the Russian invasion of Ukraine has remained in German voters’ minds.
Less than two weeks ahead of national elections on February 23, the institute found that supporters of extremist and populist parties – such as the far-right Alternative for Germany (AfD) and the Sahra Wagenknecht Alliance – are especially likely to see inflation as very high.
“Our study suggests that supporters of the fringe parties distrust official statistics,” Diermeier said.
Consumer prices in Germany rose by an average of 19.3% between 2020 and 2024.
However, the cost of key goods such as heating energy (50.3%), fuels such as diesel and petrol (41%) and food (32.8%) increased even further.
