Consumer Advisory Bodies caution: Daily expenditures are anticipated to remain elevated in 2025
Budget-constrained individuals may still face financial hurdles in 2025, according to consumer watchdog groups. Moderate inflation hasn't succeeded in lowering the high costs of daily necessities, and the source of these costs often remains a mystery.
Leading consumer advocacy figures warn of escalating financial pressures in 2025. Jutta Gurkmann, head of consumer policy at vzbv, emphasizes that continuously escalating prices pose significant challenges for many, even as we step into the new year. Items like food, the Germany ticket, and energy are at the forefront of scrutiny.
Gurkmann also criticized the lack of transparency in pricing at supermarkets. She urged for the establishment of a consumer protection body to safeguard consumers from artificially inflated food prices. "Without regulation, some entities may wrongfully hike prices," she pointed out.
According to a survey, food prices remain a significant concern. Almost 30% of respondents reported having to reduce expenses in other areas to afford groceries. For lower-income households with monthly net incomes below €1,500, the figure reaches an astounding 58%. However, 71% of survey participants reported no such limitations. Conducted by Forsa from October 9-11, the survey included 1,001 participants aged 18 and above.
Gurkmann noted that deceptive packaging tactics also contribute to price increases. "Lower content or subtle adjustments at the same price can lead to double-digit percentage price hikes," she explained. She advocated for warnings lasting at least six months to signal changes in content or packaging size.
Many are also fearful of exorbitant electricity bills in the upcoming year. To help alleviate this burden, the electricity tax should be brought down to the EU minimum.
Gurkmann also highlighted the potential price increase for the Germany ticket, which could cause additional expenses for many. She implored the federal government and states to reach a long-term and reliable funding agreement for the ticket. "We insist on maintaining the ticket's price stability until 2030," she said. "A long-term and affordable perspective is essential for the ticket to carry weight." The ticket, valid for national bus and train travel, will see a 18% price hike to €58 per month starting January 1, 2025.
After rising to 2.2% in November, the inflation rate breached the 2% mark for the first time since July. However, no expert has predicted a significant price escalation akin to 2022's turbulent situation, when energy and food prices skyrocketed following Russia's attack on Ukraine and Germany's inflation rate climbed to nearly 9%.
The economy, specifically the high costs of daily necessities like food and energy, continues to pose financial challenges for many individuals. In light of these escalating prices, consumer advocacy figures are pushing for regulatory measures and transparency to protect consumers from artificially inflated prices.
