The inflation in Germany is hitting people hard, with many unable to save money or having already depleted their savings. According to a study by the Institute for Macroeconomics and Economic Research (IMK) of the Hans-Böckler Foundation, households with low incomes are particularly affected by the current record-high inflation. A recent survey by Dutch bank ING reveals that the high costs have now depleted the savings of many people in Germany, with around 30% of respondents stating that they have no savings left. The survey also shows that more than half of Germans have such low incomes that they cannot save money, with many cutting back on clothing and food expenses.
The survey highlights the impact of inflation on people’s ability to save money, with many struggling to make ends meet. The rising prices of goods and services have made it difficult for people to build up their savings, with many having to dip into their existing savings just to cover their basic expenses. The survey also reveals that people are cutting back on spending in areas such as education, with a third of respondents stating that they are not investing in education at all.
Looking ahead, people in Germany are planning to reduce their spending on leisure activities and dining out in order to offset the high costs of inflation. This is bad news for industries that have already been hit hard by the COVID-19 pandemic. Despite these challenges, Germany remains a nation of savers, with a significant proportion of the population still having high levels of savings. However, the impact of inflation on people’s ability to save money is a cause for concern, and experts are calling for measures to be put in place to address this issue.
In conclusion, the high inflation in Germany is having a significant impact on people’s ability to save money, with many struggling to make ends meet. The survey by ING highlights the challenges faced by households with low incomes, who are particularly affected by the rising prices of goods and services. While Germany remains a nation of savers, the impact of inflation on people’s ability to save money is a cause for concern, and experts are calling for measures to be put in place to address this issue.
