Find out where prices will go up + What you can do right now
What we all notice for a long time when refueling, shopping or going out is now official: prices in Germany are rising more than they have been for a long time. That means it is going to be a very expensive winter.
The Federal Statistical Office determined an inflation rate of 4.1 percent for September – the highest level since 1993! Unlike 28 years ago, the price increase is not offset by ordinary interest on savings. That means: 100 euros in the 2020 bank account today only have a purchasing power of around 96 euros due to zero interest.
What are the reasons for the mega-inflation?
The cost of raw materials will explode this fall. An energy crisis is raging in Great Britain, where natural gas prices last went up ten times! Suppliers are going bankrupt in a row. This is also due to Brexit, but not only.
After the Corona crisis, there is catch-up effects all over the world in industry, consumption and travel. Demand is going through the roof, resulting in bottlenecks in world trade. In Great Britain there is a lack of truck drivers – and therefore there is a lack of fuel supplies at petrol stations, and even some groceries in supermarkets.
Will this be our most expensive winter ever?
Quite possible. Energy prices are climbing like crazy. Energy imports were almost 94 percent more expensive in August than a year earlier. Natural gas cost a good 177 percent more, imported crude oil almost 64 percent. Reasons: World demand is increasing, major supplier Russia delivers little to us.
In addition to energy, ores, metals, plastics and wood also became more expensive. For us this means: a tank of heating oil costs 80 percent more than in the previous year. The liter of super (E10) averages almost 1.60 euros. With us, electricity is more expensive than ever and costs more than anywhere else.
In addition: In view of the mini-interest rates and the scarcity of living space, the prices for residential property are also rising unchecked: According to the Federal Statistical Office, residential real estate rose in the 2nd quarter of this year by an average of 10.9 percent compared to the same quarter of the previous year – the largest price increase since 2000 This in turn increases the price pressure on rents.
Will inflation go on forever now?
Not forever, but for a long time. Because: The increase in energy prices in particular is politically wanted in Germany (and in many other countries) in order to put a stop to climate change. For example, by resolution of the GroKo, the CO2 tax had risen to 25 euros / ton on New Year’s Eve.
The new federal government, regardless of who rules with whom, will continue to increase. The target for 2025 is (for the time being) 55 euros / ton. That would make oil, gas, fuel and electricity even more expensive. Inflation is like a ketchup bottle. First nothing comes for a long time, then everything at once, and that goes wrong.
Will Christmas be particularly expensive?
Probably yes. The price jumps are not limited to energy and housing. We see them everywhere. The import prices for us rose by 16.5 (!) Percent over the course of a year in August.
Hundreds of giant freighters are stowed in front of the mega-ports in the Far East and California; Containers are rare all over the world. That is dramatic, because 90 percent of world trade is carried out by sea. Chips (semiconductors, e.g. in electronics, cars) are missing in factories and lead to production stops, as is now the case at Opel in Eisenach (Thuringia). World market prices for cotton
(T-shirts, terry cloth) have more than doubled since the Corona low in 2020. Even cocoa costs 20 percent more than at the beginning of July.
What can I do now?
▶ ︎ 1. Take care of your Christmas presents as early as possible. Because some goods could become scarce towards Advent. Anything that needs a chip (e.g. smartphone, game console) could quickly sell out and no longer be available.
▶ ︎ 2. For gas, oil, fuel, electricity: Compare prices, for example at www.check24.de (“Strom & Gas”). Take gas, for example: A change of provider can save more than 300 euros per year.
▶ ︎ 3. Collective fuel oil order, e. B. with neighbors in the street / settlement. Reduces travel costs, a larger purchase quickly results in savings of five percent per liter.
▶ ︎ 4. Long-term: Prepare your personal energy transition – away from fossil fuels and towards e-cars, solar roofs and renewable energies.
- Air your apartment – this is important in Corona times
- Ancillary costs insanity (Nebenkosten) in Germany! Are you paying TOO MUCH as well?
- Time change in Germany – When is the clock changed to winter time in 2021?
- Winter is coming! Prepare yourself with our ultimate winter checklist!