The high inflation rate in Germany has become a major concern for many citizens. The ongoing conflict in Ukraine and the economic impact of the Covid-19 pandemic have led to a rapid increase in inflation in recent months. Food prices have risen by 8.6% compared to the previous year, with some products such as cooking oils experiencing even higher price hikes of 27.3%. A recent study by McKinsey revealed that inflation has become the biggest worry for the population. However, according to Professor Marcel Fratzscher from the German Institute for Economic Research (DIW), food prices are still too low in Germany.
In a recent interview on the “Münchner Runde” program on Bayerischer Rundfunk (BR), Fratzscher stated that people in Germany are not spending enough on food, which is detrimental to the environment, nature, and animal welfare. He believes that food prices do not reflect the damage and costs they ultimately cause. However, his comments were met with opposition from other experts in the field. Professor Jan Schnellenbach from the University of Cottbus argued that higher prices do not necessarily lead to higher production standards and income for farmers. He also pointed out that Germany cannot act alone in raising standards, as cheaper products from neighboring EU countries would flood the market.
Politicians also weighed in on the debate, with CDU-Sozialpolitiker Dennis Radtke stating that this is the wrong discussion to have at a time when prices are skyrocketing and many people are struggling to make ends meet. Verena Bentele, the chairwoman of the social association VdK, also believes that healthy food should be affordable for everyone, including those with low or no income. She suggests that the value-added tax on fresh fruits, vegetables, and legumes should be eliminated.
In conclusion, while the high inflation rate in Germany is a cause for concern, the debate over food prices and their impact on the environment and animal welfare is a complex issue that requires careful consideration and input from various stakeholders.
