German Inflation Has Led To Soaring Energy Prices But No Rise In Clothing Electronics.

Germany Retail The HDE recently pointed out that (2010) Germany's booming economy (+3.6%) has set a good foundation for retailers, especially in the second half of last year. Operation A surplus has emerged.

This year, Germany's economic growth (+2.5%) is still impressive. consumption A stable atmosphere is conducive to the development of the retail industry this year. However, there are still some hidden crises, such as the price of oil and other raw materials such as copper, iron, cotton, corn and coffee, which will lead to high costs of heating, transportation, logistics and food.

In March this year, when the 17 countries of the euro inflation Even though the rate has risen to 2.6%, the German inflation rate is only 2.1%. Nevertheless, German inflation has been rising since October 2010 (+1.3%), and Germany has been extremely sensitive to price rises. The main reason is that after the end of the first World War, the German surname had experienced an unimaginable inflation. In May 1923, 1 dollars could still be exchanged for 47670 Mark (old Mark), but in the same year November 20th, it had been able to exchange 420 billion Mark, thus we can see that the inflation was developing seriously. After the end of the two World War, the German people once again experienced the hardship of price increase. Therefore, once inflation is over developed, it will adversely affect the retail industry.

According to the data provided by experts, the current Germany The highest price increase is in the case of heating oil (+32%) and diesel (+20.4%).

Fruit (+14.7%), gasoline (+9.2%), coffee (+9%), electric power (+7%), gas (+3.5%), and vegetables (+3.5%), as the above products are usually paid in cash, it makes the German people feel that the price is very high. In fact, if the consumer price is calculated, the increase should be only 1.2%. The reason is that many products such as digital cameras (-8.2%), notebook computers (-12.1%), telephone charges (-2.7%), package tours (-0.1%), sweets (-0.2%) or clothing (not only) have not gone up, but they have gone down in price.

In addition, a large number of commodities increased by less than 2%, such as rent (+1.3%), meat products (+1.1%), skin care products (+0.2%), cars (+0.2%), etc. The current rise in oil and cocoa prices is mainly due to the outbreak of war in North Africa, a major oil producing country in Libya and an important cocoa producing country in the world.

Other important factors that affect inflation in Germany are that, last year, German companies were operating well and making money. Therefore, the major trade unions have asked for salary adjustment. This will also affect inflation. However, according to experts, so far, although the unions have asked for a pay adjustment, they still need to raise their employment opportunities, so the demand for salary adjustment is quite moderate. To sum up, despite the existence of inflation in Germany, the German retailing industry should grow steadily this year.