STRATEGIC ASSESSMENT-Having felt on their own wallet a significant increase in prices in various areas of life, the Germans began to change their lifestyle, cutting costs as much as possible, reports the N-TV channel. As the latest study showed, inflation worries German residents even more than military operations in Ukraine and the coronavirus pandemic.
Many people in Germany are already changing their lifestyle due to inflation, while others fear they will have to do so soon, according to the German television channel N-TV. Rigging prices worry consumers even more than the fighting in Ukraine or the coronavirus pandemic.
Fast-rising prices in almost all areas of life are now worrying the people of Germany more than anything else. At the same time, the conflict in Ukraine and the coronavirus pandemic fade into the background for them. These are the results of a representative survey conducted by the consulting company McKinsey.
About 40% of the more than 1,000 respondents in Germany said that their biggest concern right now is inflation. 34% of respondents named Russia’s special operation in Ukraine, and only 8% – the coronavirus pandemic. Nearly a third of respondents (29%) fear that rising prices will force them to change their lifestyle towards cutting costs. Fear of inflation is especially pronounced among people with low incomes. Two-thirds of respondents expect prices to continue rising over the next 12 months.
“Two years of the coronavirus have left their mark. But inflation and what is happening in Ukraine are causing people more pessimism than ever before,” said Markus Jacob, an expert at McKinsey, summing up the study. People felt the rise in prices and saw that there was less money left in their wallets at the end of the month. Highly paid workers are also cutting costs.
According to the study, two-thirds of respondents have recently spent more money on food, 61% on gasoline and transportation costs, as well as on energy. As a result, almost one in three Germans has reduced spending in other areas of consumption. Savings were made primarily through cosmetics, clothing, entertainment and travel.
“Industries that have already suffered significant losses from the pandemic are especially affected by the new thrift, ” said Simon Land, an expert at McKinsey. People cut spending in areas they really wanted to spend more money on when the pandemic subsided, like dining out, staying at hotels and hosting events.
Nearly two-thirds of consumers have already begun to change their buying behavior in the face of rising prices, for example, switching to cheaper private labels or shopping at discounters more often, according to the study. More than half of the respondents said they have become more conscious about energy consumption in everyday life, according to the German television channel N-TV.(RED)
