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EXPLAINED: The grocery products in Germany getting more expensive

Everyone is talking about consumer prices rising in Germany. What does it mean in real life?

A customer with a €5 note. Products are getting pricier in Germany.
Readers of The Local shared their inflation-busting tips. Photo: picture alliance/dpa | Moritz Frankenberg

Inflation keeps going up – and on Wednesday the Munich-based ifo institute, said it expected consumer prices to rise from 5.1 to 6.1 percent in March – which would be the steepest rise in consumer prices since 1982.

It comes as residents have already been feeling the pinch at the checkout (and on energy bills) over the last few months with the cost of living spiralling upwards. And Russia’s war on Ukraine is exacerbating the issue further. 

READ ALSO: German consumer prices set to rise steeply amid war in Ukraine

According to research by German site Focus Online and trade publications like the Lebensmittel Zeitung, several supermarkets are reacting by pushing prices up further. 

Experts say that Aldi and Lidl tend to set the tone in German supermarkets because they are among the most important customers for the likes of farmers, manufacturers and distributors. 

Last week, Aldi Süd and Aldi Nord increased the price of about 140 items in their standard assortment. Adding flavours, sizes and other variations of these items, the number quickly climbs to 400 products.

A spokesperson for Aldi Nord and Aldi Süd said the market had been strained for months by challenges including the Omicron wave of Covid-19, the international shortage of truck drivers and the increased costs for energy and raw materials.

READ ALSO:

“The situation has been exacerbated by the war in Ukraine,” said the spokesman. As part of the discounter model, Aldi reduces sales prices when purchase prices fall and increases sales prices when purchase prices rise.

“We would like to point out that our margins do not change as a result of this move,” said the spokesman. 

According to Focus Online, discounter giant Lidl also recently raised the prices of branded products, while there have also been noticeable increases at Rewe and Edeka.

Which products are you paying more for?

According to Focus, the prices of several food and drugstore items have massively increased since the end of January 2022.

Some of the price hikes on products include:

Pasta (up to 40 percent increase)

A supermarket employee in Offenburg stocks pasta in 2020. Pasta has been increasing in price in Germany.

A supermarket employee in Offenburg stocks pasta in 2020. Pasta has been increasing in price in Germany. Photo: picture alliance/dpa | Patrick Seeger

Detergents (up to 20 percent)

Mineral water (over 10 percent)

Dairy products (up to 5 percent)

Coffee (up to 10 percent)

Paper handkerchiefs (up to 15 percent)

Toilet paper (up to 10 percent)

Kitchen roll (up to 20 percent)

Sunflower oil (up to 100 per cent)

READ ALSO: Germans urged not to panic-buy over shortage fears

In most cases, prices per product increased between five and 50 cents.

One example is mixed bio mince from Aldi Süd. While the 400-gram tray cost €3.59 in January, customers now pay €3.99 for it. At Rewe, customers now pay around €5.59 for mixed organic mince instead of €4.99 (January 2022).

The mineral water from own-brand Quellbrunn no longer costs 19 cents at Aldi, but a hefty 25 cents. Rewe seems to have followed suit. Those who put the mineral water from their label “Ja” in their shopping trolley now pay 25 cents for the 1.5-litre bottle at the checkout.

Meanwhile, price hikes for sunflower oil and rapeseed oil are particularly steep.

While last year customers paid between 89 and 99 cents for a bottle of oil, the product now costs up to €1.99 from some retailers. This is of course down to production and harvest stagnating because Russia is waging a brutal war against Ukraine.

A purchasing manager of a well-known discounter told Focus Online: “It’s possible that customers will soon have to pay over three euros for a bottle of sunflower oil.”

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GERMAN CITIZENSHIP

How much do you need to earn to qualify for citizenship in Germany?

Applicants for German citizenship need to be able to support themselves financially, but it's often unclear what that means in practice. Here's how to work out if your income is high enough for citizenship.

How much do you need to earn to qualify for citizenship in Germany?

Out of the requirements for qualifying for a German passport, supporting yourself financially is one of the most important – and one of the most confusing.

Many foreigners assume that the authorities have a magic number in mind and will often worry about whether their income is above or below this threshold.

In reality, though, the law is much more flexible. In section 10 of the nationality law, it states that applicants must show that they “can support themselves and their dependent family members without claiming benefits under the Second or Twelfth Book of the Social Code.”

In other words, that your income is healthy enough to not rely on the state for things like long-term unemployment benefits.

According to Fabian Graske, an immigration lawyer at Migrando, around €1,500 gross per month for a single person is usually considered enough to live on. 

That said, there isn’t really a one-size-fits-all approach to this quesiton. 

When it comes to working out if your income is high enough, you’ll need to take into account a number of factors that your case worker at the naturalisation office will also weigh up. 

That’s why it’s important to ask yourself a number of questions that go beyond just how much you earn: 

How high are your living costs? 

In Germany, there are huge regional differences in the cost of living, so what someone can afford to live on varies hugely from place to place.

For example, someone living in pricey Munich is likely to need much more money for rent or their mortgage than a resident of much more affordable places like Halle or Leipzig, so you should consider whether what you earn is enough to offer a basic standard of living in the city or town you live in. 

READ ALSO: Requirements, costs and permits – 6 essential articles for German citizenship

It is worth mentioning, though, that what you actually pay for rent and bills matters more than the averages. If you’re lucky enough to find an apartment with unusually low rent in Berlin, for instance, you can probably get away with earning less money as well. 

Are you single or do you have a family?

If you’re single and have no children, you’ll likely get a lot more lenience from the authorities when it comes to having a lower-than-average income.

A family sit at a lake.

A family sit at a lake in Bavaria. Image by Eva Mospanova from Pixabay

Of course, if you have dependents such as kids or a spouse who doesn’t work (or both), you’ll need to ensure not only that your own living costs are taken care of, but also that your family can survive on your income alone.

That naturally means you’ll be expected to earn a certain amount more for each dependent child or adult.

On the plus side, any income your spouse does earn will be counted alongside your own, so if you’re the one who is supported by their partner, the authorities will also take this into account. 

Is your job stable or unstable?

One key thing to think about when applying for citizenship is the security of your work contract. Someone who has a long-term contract with an employer and has passed their probationary period will be in a much better position than someone who is still on a three-month trial, for example.

This doesn’t mean you shouldn’t submit a citizenship application after just starting a new job, but be aware that the authorities may well wait to process your application until you’ve passed the initial probation and have been put onto a longer-term contract. 

A similar rule of thumb applies to people who are currently claiming Arbeitslosengeld I (ALG I), or unemployment insurance. Though this doesn’t disqualify you from citizenship, it may delay your application until you can find a stable job. 

READ ALSO: Can I still get German citizenship after claiming benefits?

Do you need to rely on welfare payments to get by?

A key aspect of German naturalisation law is working out whether you’re likely to be a financial burden on the state by relying too much on the welfare system.

The entrance to the Jobcenter in Düsseldorf,

The entrance to the Jobcenter in Düsseldorf, North Rhine-Westphalia. Photo: picture alliance/dpa | Oliver Berg

While everyone needs a helping hand from time to time, claiming benefits like long-term unemployment benefit (Bürgergeld) or housing benefit (Wohngeld) to top up your income sadly shuts you out of the naturalisation process and could also make it hard for you to qualify in the future. 

Luckily, this doesn’t apply to all types of state support – Kindergeld, ALG I and Bafög don’t count, for example – so seek advice from a lawyer or your local citizenship office if you’re unsure.

How old are you?

Though this is hard to fully quantify, age can sometimes play a role in assessments of your financial fitness in Germany.

A young person fresh out of university or vocational college may be seen as someone with high earning potential over the years, so in some cases the authorities may take a more relaxed approach to their current income.

In contrast, an older person coming to the end of their working life could be held to slightly stricter standards. 

This is also why it can be important to show that you have sufficient pension contributions or another form of security for the future, such as owning your own home or having lots of savings. 

READ ALSO: How can over 60s get German citizenship under the new nationality law?

What counts as ‘income’ under German law?

It’s important to note that income doesn’t just have to mean the salary you get at your job: income from rental properties, side hustles and freelance gigs can also be included, as well as things like alimony payments after divorce.

Once again, if you’re unsure, just ask. The citizenship offices are there to advise you and should give you clear instructions about what kind of documents count as proof of income in your application. 

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