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Shopping in Leipzig: Many people save on new clothes

Photo: Jan Woitas/dpa

People in Germany have dealt with the high inflation rates in recent years in very different ways. This is shown by an evaluation commissioned by the German Institute for Retirement Provision (DIA) based on the results of an INSA-Consulere survey entitled “When the euro loses value”. According to this, buyers most often switched to cheaper food (55 percent).

But it is also said that savings were made on eating out (50 percent), spending on clothing (46 percent), larger purchases and leisure activities (43 percent each). The DIA is supported by companies in the financial sector; the shareholders include Deutsche Bank, DWS Group, BHW Bausparkasse and the Zurich Group Germany.

According to the results, only a third have given up traveling (36 percent), canceled subscriptions (33 percent) or drive less or no longer at all (30 percent). On the other hand, only a quarter (27 percent) have decided to use local public transport more frequently.

Three different types of inflation

According to the two study authors, Reiner Braun and Hubertus von Meien, the latter could also be due to the lack of offerings in some places. According to DIA, 2,000 people from Germany aged 18 and over took part in the survey. The data was collected in May 2023. In 2023, inflation reached the second highest level since reunification; the annual average price increase was 5.9 percent, and food prices in particular became significantly more expensive. At the beginning of the year, however, the increase in consumer prices weakened, particularly due to falling energy costs.

Using a so-called cluster analysis, the study authors developed three different types of consumer behavior in dealing with rising consumer prices: The

adapted

(35 percent) have already restricted themselves far above average in all consumption areas surveyed. In comparison,

those

willing to adapt

(39 percent) only made restrictions that were slightly below average. However, a good quarter, the

non-conformists

(26 percent), have so far hardly restricted themselves.

According to the study authors, people who are assigned to the well-adjusted cluster are more likely to place themselves in the financial underclass. These are more likely to be women and people living alone. Older people and pensioners are found disproportionately in this group.

The analysis also shows that a third of those surveyed are already so badly affected by inflation that they have changed their consumption habits to a greater extent. According to the analysis, around nine out of ten people in particular have now restricted spending on the most common consumption areas.

Apr