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REVEALED: The everyday products getting less expensive in Germany

Inflation rates are soaring in Germany - but the jump in prices hasn't affected all consumer goods. Here are a few of the thing that have actually become cheaper in recent months.

Ice cream shop Bielefeld
A server makes a three-scoop ice cream cone in Bielefeld, North Rhine-Westphalia. Photo: picture alliance/dpa | Friso Gentsch

The cost of living is rising at an alarming pace. In April, the inflation rate in Germany hit a stunning 7.4 percent – the highest it’s been in more than 40 years.

In real terms, that means that many people will be getting poorer year by year, unless they’re lucky enough to have got a stellar pay rise at work. 

When you dig down into the nitty gritty of the price rises though, the cost hikes are quite unevenly spread across different goods and services. 

The Local has reported regularly on the dizzying rise in the cost of fuel and energy, as well as the food items – like milk and fresh meat – that are getting more expensive by the week.

READ ALSO: What to know about the latest price hikes in German supermarkets

In April, energy prices rose by 35.3 percent, while prices for heating oil almost doubled. Consumers also had to pay significantly more for fuel (38.5 per cent) and natural gas (47.5 per cent).

Meanwhile, the weekly grocery shop has also gone up in price, with food costs on average 8.6 percent more expensive than in April last year. Edible fats and oils (27.3 percent) and meat products (11.8 percent) were the items that went up most steeply. 

But not everything is going up in price so dramatically, and some everyday items have even got cheaper over the past few years.

Here’s what consumers in Germany are saving money on today compared to last year.

Digital services and software

Some of the biggest drops in prices over the past year have been in the online and digital sectors, which is great news for anyone looking to pick up a new entertainment system or a new Wifi contract for their home. 

According to the Federal Office of Statistics (Destasis), computer operating systems and other types of software saw the biggest drop in price between April 2021 and April 2022. In fact, people purchasing a software subscription or operating system this spring are likely to have paid around 14.3 percent less than customers who purchased the same software last year.

Destatis also noted that Wifi and internet services have become cheaper in recent months. Since April 2021, the cost of “wireless telecommunications services” (otherwise known as Wifi) has decreased by 2.4 percent, while “access to online services has internet” is 0.8 percent cheaper.

Anyone’s who’s been saving up for a new TV, DVD players or satellite dish will also be pleased to discover that these products currently cost around one percent less than they did in April last year. 

Other electronic devices such as headphones, headsets, e-book readers and digital picture frames fell in price by 1.3 percent between March 2021 and March 2022. Renting videos or DVDs became 0.8 per cent cheaper over the same period.

READ ALSO: 

Wine and sweet treats

While it’s true that most of the weekly grocery shop has gone up in price, some surprising items are actually cheaper now than they were a year ago.

In fact, you can get a romantic dinner for two today for less than you could a year ago, since a plate of seafood is 1.6 percent cheaper and a bottle of wine is 0.8 percent cheaper. Home bakers can also enjoy things like puff pastry and baking mixes for less.

People with a sweet tooth seem to be the biggest winners this year: they can now enjoy a bar of chocolate for less, since the price of chocolate has dipped by three percent since last April, and also make savings of 2.3 percent on any artificial sweeteners they buy. 

Milk and white chocolate bars on display in Berlin.

Milk and white chocolate bars on display in Berlin. Photo: picture alliance/dpa/dpa-Zentralbild | Monika Skolimowska

The other treat that is getting cheaper is ice cream. Just in time for summer, the cost of your ice-cream sundae or Eiskugel in Waffel (ice cream in a cone) has dropped by one percent. 

OK, it may only be a few cents lower, but we still think it’s a good reason not to feel guilty about treating to yourself to an ice cream on a sunny day. 

READ ALSO: German consumers to be hit by further price hikes in supermarkets

Household appliances

Though many household expenses have gone up this year, a few common household goods are currently bucking the trend. 

For soup and smoothie addicts, a staple appliance has decreased in price over the past twelve months. In fact, buying an electric mixer, food processor or blender will set you back 2.8 percent less this year than in April 2021.

Prices for electric irons (-0.5 percent), hoovers (-0.8 percent) and “other large household appliances” (-1.2 percent), which includes water softeners, sewing machines and safes, have also gone down.

READ ALSO: The products getting more expensive and harder to find in Germany

Home and contents insurance

At a time when people have been spending more time at home due to Covid-19, the cost of home-related insurance has gone down.

According to Destasis, the price of “insurance services connected with the dwelling”, which means home and contents insurance, has gone down by around 1.8 percent year on year. 

Glasses and contact lenses

Glasses and contact lenses can be a big expense for anyone who needs them, so people with less-than-perfect eyesight will be pleased to know that the price of both of these has gone down slightly in the past year.

As of April 2022, the price of glasses and contact lenses has gone down by around 1.8 percent on average. 

Designers sunglasses at an auction house in Cologne

Designers sunglasses at an auction house in Cologne. Photo: picture alliance/dpa | Oliver Berg

Clothes and shoes have also been trending downwards over the course of this year: back in February, women’s clothes were around 3.3 percent cheaper than they were in February 2021, while men’s clothes had dropped 0.7 percent in price.

Meanwhile, shoes would have set you back around 0.7 percent less on average, with women’s shoes once again showing the steepest decrease at minus 2.9 percent.

Children were the only demographic to buck this trend. In fact, children’s clothes had gone up in price by 1.6 percent in February and children’s shoes were up by 1.4 percent. 

READ ALSO: OPINION: Why Germany’s energy relief payouts are no fix for inadequate social security

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HEALTH

Why long-term care insurance fees are likely to rise in Germany next year

Social contributions could be set to rise yet again in Germany with a potential hike in the cost of long-term care insurance. Here's what you need to know.

Why long-term care insurance fees are likely to rise in Germany next year

Following a rise in additional health insurance fees at the start of the year, insurance funds have warned that a further hike in fees could be needed.

Speaking to the regional Rheinische Post, several statutory funds revealed that rising costs could be placed on the shoulders of workers in Germany as early as next year. 

Why are health insurance companies threatening a hike in fees?

Though the healthcare system in Germany is relatively complicated, the reason for a potential rise in care contributions is a simple one: there just isn’t enough money to fund the sector.

According to the Rheinische Post, health insurance funds are forecasting a huge black hole in their finances at the start of next year and expect to bring in just a third of what they need in order to meet demand.  

“The long-term care insurance funds assume that the financial resources in the first quarter of 2025 will amount to less than one month’s expenditure,” the Association of Statutory Health Insurance Funds in North Rhine-Westphalia told the regional newspaper. 

“In this case, the federal government may raise the contribution rate by statutory order.”

READ ALSO: What foreigners need to know about old-age care in Germany

Fears about the financial future of care were shared by Verena Bentele, the president of the VdK social association. Speaking on RBB, Bentele argued in favour of propping up the struggling care sector using tax revenues. 

“It one of society’s important tasks to subsidise care from tax revenue if the system would otherwise collapse,” she said. 

How much could insurance contributions rise by?

This isn’t entirely clear so far, though experts in the sector have suggested than the rise would be relatively incremental.

According to Andreas Storm, the CEO of the DAK insurance fund, 0.2 percent is a plausible number.

Currently, people with children pay 3.4 percent of their income into the long-term care funds, while childless people pay four percent. For those in employment, however, the contributions are split between the worker and the employer, meaning most people pay either 1.7 percent or two percent each month.

Self-employed people, meanwhile, are usually required to cover the full cost of social contributions themselves, meaning this group could be hit hardest by any potential hike in fees. 

What other issues are affecting long-term care in Germany?

Alongside the difficult financial situation, the care sector – like many other professions in Germany – is also struggling to plug a shortage of skilled staff, according to the German Council of Nurses. 

According to the council’s president, Christine Volger, there is already a shortage of around 115,000 full-time professionals in the care sector, which could rise to 500,000 by 2034.

One major issue is Germany’s aging population, with longer life expectancies increasing the demand for long-term care at the same time as qualified employees enter retirement. To make matters worse, many of the nurses in the sector also opt for part-time work. 

Nursing home in Baden-Württemberg

Elderly patients play a fitness-focussed ball game at a nursing home in Burladingen, Baden-Württemberg. Photo: picture alliance/dpa | Bernd Weißbrod

“The gap between supply and demand is worsening,” Volger told Bild. 

On Monday, Health Minister Karl Lauterbach (SPD) said Germany had experienced an “explosive” rise in the number of people needing care, with 360,000 new patients requiring support in 2023. 

READ ALSO: Germany sees ‘explosive’ hike in people needing old-age care

The Medical Service of the Health Insurance Funds (MDK) also expects a big hike in care cases due to the prevalence of dementia.

If there is no breakthrough in therapy and prevention, the number will continue to rise sharply, Carola Engler, deputy chairwoman of the MDK, told the Augsburger Allgemeine newspaper.

There is already evidence of this happening: in 2023, health insurance funds processed around 160,000 more applications for dementia care than in 2022. 

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