The German food trade is currently struggling with supply bottlenecks. In March, 77.7 percent of companies surveyed reported shortages, the German Ifo Institute announced on Monday. At the same time, falling demand for food was also reported.
“The number of companies reporting delivery problems is still high,” says Ifo expert Patrick Höppner. While almost every second company surveyed is affected by bottlenecks across the entire retail industry, more than three-quarters (77.7 percent) are in the food industry. However, the situation could ease again in the coming months. “Reducing supply problems should help curb food price increases over the course of the year,” predicted Höppner.
Customers pay more attention to the price
Food has now replaced energy as the price determinant in Germany: in March it increased by an average of 22.3 percent compared to the same month last year, while energy was only 3.5 percent higher. This also affects demand. In the past first quarter, 28.4 percent of the surveyed retailers noted a drop in demand. “Customers tend to buy fewer groceries and choose them more price-consciously,” says Höppner in a broadcast.
Delivery problems at German car dealerships have worsened recently. In this sector, 77.9 percent of the surveyed entrepreneurs reported bottlenecks last month.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
