Germany: Decline in food sales recorded in April

Retail sales have fallen sharply in recent times, with the food industry recording the sharpest decline, mainly due to rising inflation.

According to the Federal Statistical Office, Germans’ incomes were 4.7% lower in April than in March – but in reality, if market prices are taken into account, the decline is even higher, at 5, 4%. “Real sales have reached their lowest level since February 2021,” said federation statisticians, noting that a reduction of just 0.2% was initially projected.

Especially in the food industry the decrease in sales is even more noticeable. It is characteristic that the sales in the trade of non-food items shrank by 4.4%, while in food the shrinkage reached 7.7%. “This is the biggest drop in food sales from month to month since 1994,” said Statistics Officers, citing a likely increase in food prices, which reached 8.6% in April from 8.6%. on March.

Experts also warn that the upward trend in food prices is likely to continue throughout the year. According to a study by the credit insurance company Allianz Trade, the retail price of food may increase by more than 10% in the coming months.

The Farmers’ Union is already claiming increases in agricultural products, arguing that producers can no longer bear the full cost. “These huge cost increases, due to increases in oil, fertilizers and feed, can not only be passed on to farmers, but must also be passed on to consumers,” said union president Joachim Ruckvid.

The sharp rise in prices is not the only problem in the market, as measures taken in China cause long delays in the supply chain internationally. In May, 80.1% of German retailers complained that they were unable to deliver all the goods ordered.

SOURCE: AMPE