Germany faces shortages of goods and food

With inflation rising to the highest level in nearly 40 years – 7.3% in March 2022, the conflict in Ukraine is continuing to have a direct impact on prices as well as the supply of products on the shelves. in many supermarkets in Germany.

Beer, the favorite drink of Germans, is also becoming more expensive. According to Focus Online, wheat, barley, glass, labels and the metal that make the bottle caps are in short supply. The rising cost of energy and raw materials is forcing brewers to raise prices, said CEO of the German Brewers Association Holger Eichele. However, according to the association, a crisis situation is unlikely, given that Germany has more than 1,500 breweries.

Meanwhile, the Agricultural Market Information Company (AMI) said that sunflower oil, a particularly popular food in Germany, which accounts for more than 30% of the bottles sold in the country, is increasingly scarce. . Since the conflict broke out, supply has stalled and prices on world markets have doubled. Although supermarkets and restaurants are turning to alternative oils, Russia’s export ban on sunflower and canola seeds through the end of August predicts other types of oil will also increase in price over time. next.

According to Federal Statistics Office data, the price of bread in February 2022 was 5% higher than in the same period last year and is likely to continue to increase in the coming months. The Association of Grains and Milling Flour (VGMS) says the conflict in Ukraine is also having a big impact on pasta producers in Germany. Rising costs of energy, raw materials, packaging and logistics drives manufacturers to raise prices.

High electricity prices, as well as increasing fuel costs for feed and livestock transport, have hit the livestock industry hard, causing meat prices to rise over the past few months in Germany.

Just in time for Easter, many retailers across the country are raising egg prices. This is partly because chicken feed often contains corn or wheat from Ukraine, which is currently in short supply, and partly due to increased transportation costs. As of February 2022, eggs are nearly 20% more expensive than they were a year ago. While the cost of dairy products such as milk, butter and cheese also increased for some time.

German fuel prices are among the highest in Europe. Federal Statistics Office figures show that Germany has the highest fuel prices in Europe. As of April 4, the price of diesel is 2.06 euros per liter in Germany, while gasoline E5 also costs 2.06 euros per liter. Germany is also one of the most expensive countries in the European Union (EU) in terms of fuel prices, behind only Finland, the Netherlands and Denmark. While the neighboring country with the cheapest E5 gasoline is Poland, where a liter costs 1.42 euros.

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