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MONEY

Energy crisis: Which everyday German products are increasing the most in price?

Inflation in Germany reached 10.4 percent in October – the highest level in 70 years. The Federal Statistical Office has now announced which prices have risen particularly sharply.

Published: 14 November 2022 13:09 CET
A woman takes a €5 banknote out of her purse.
A woman takes a €5 banknote out of her purse. Photo: picture alliance/dpa/dpa-Zentralbild | Fernando Gutierrez-Juarez

Energy prices

Energy prices in Germany have risen significantly as a result of the Russian invasion of Ukraine and the squeeze on cheap energy supplies and high energy prices are the biggest driver of inflation.

Despite the relief measures taken by the federal government over the past year, energy prices in October were 43 percent higher than in the same month last year.

READ ALSO: KEY POINTS: Germany’s inflation relief measures to support people in cost of living crisis

According to the German Federal Statistical Office, household energy in particular has become significantly more expensive.

Prices for natural gas, for example, have more than doubled since last October – increasing by 109.8 percent.

The cost of heating with other energy sources has also risen sharply – the price of firewood, wood pellets or other solid fuels has increased by 108.1 percent since October 2021, while the price of heating oil has increased by 83 percent. Electricity prices have also increased by 26 percent.

A man fills up his car at a gas station in Duisburg. Photo: picture alliance/dpa | Christoph Reichwein

Prices for gasoline and diesel have also risen by more than 22 percent since last year. In October, an average 40-litre tank of Super E10 cost €76 – €10 more than a year ago and €26 more than in 2020. 

Groceries

According to the Federal Statistical Office’s report, private households are now paying on average 20.3 percent more for groceries than in October 2021.

The biggest price hike has been for edible fats and oils – such as butter and cooking oil – which have increased by 49.7 percent since last October.

A girl spreads butter on a slice of bread. Photo: picture alliance/dpa | Patrick Pleul

Dairy products and eggs are 28.9 percent more expensive than a year ago, while vegetables and cereal products are 23.1 and 19.8 percent more expensive respectively.

The statisticians attribute the price increases to supply bottlenecks and problems in the upstream stages of the production chain as the main reasons for these cost hikes. 

READ ALSO: Fact check: Is Germany heading into a recession next year?

Prices for meat have also risen by 19.3 percent within the last year, as the cost of energy, fertilizer and feed has risen sharply, while labour shortages and minimum wage increases have made personnel costs more expensive.

Vocabulary 

Price increases – (die) Preiserhöhungen

Wood pellets – (die) Holzpellets

Heating oil – (das) Heizöl

Dairy products – (die) Molkereiprodukte

Cereal products – (die) Getreideprodukte

We’re aiming to help our readers improve their German by translating vocabulary from some of our news stories. Did you find this article useful? Let us know.

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INHERITANCE

EXPLAINED: How to write a will in Germany

German succession law is pretty clear on what happens to your assets if you die without a will. But there are some big advantages - particularly for foreigners - of writing one.

Published: 26 April 2024 10:19 CEST
EXPLAINED: How to write a will in Germany

First and foremost, the largest advantage when it comes to writing wills as a foreigner in Germany – is the option to decide which country’s law applies when you write your will.

“Foreigners living in Germany have a huge advantage over German citizens, because you can choose the law of your own country for your will – even if you live in Germany,” says Andreas Moser, a Chemnitz-based immigration and family lawyer who runs a popular blog on German citizenship and family law. “Dual citizens who are German and have another nationality also have this advantage.”

READ ALSO: Everything you need to know about German inheritance law

Whether you want to do this of course, depends highly on the other country concerned and its law – and how much it differs from German law.

In specific detailed cases, you may want to consult a lawyer who specialises in wills and estates. One example of how German law may differ though is that many countries don’t have “forced heirship”, which requires you to leave certain shares of your estate to certain immediate family members.

By contrast, Germany has forced heirship. If, however, you would like to get around this for some reason, you can specify that your will should go under the other country’s law – if, for example, that country doesn’t have forced heirship.

This is unlikely, however, to result in people resident in Germany you leave assets to being able to get around inheritance tax, as this counts towards the receiver’s tax and not the deceased’s. However, there are other cases when using either country’s estate law might have different implications for certain assets – something a specialised lawyer can give you more information about.

If you want your other country’s rule to apply, make sure you specifically state that in your will.

EXPLAINED: The rules around inheritance tax in Germany

When should you definitely have a will?

Moser suggests that foreigners in Germany who want their native country’s law to apply write a will and specifically state that as their wish.

He also recommends wills in particular for those who have “patchwork” families, where one or both spouses have been married before or have children from previous marriages – in order to avoid complicated proceedings over who gets what.

A family sit at a lake.

Foreigners in Germany – even if they are dual German citizens – can choose the succession law they want to apply in their will. Image by Eva Mospanova from Pixabay

How should I write a will?

When it comes to composing a will, you have three main options:

The first is to write an international will that’s valid in your home country and that specifically states that you want the law of your home country to apply. 

The disadvantage of this approach is that your heirs may have to later pay to have it translated into German. You can also arrange to have an official German translation of it done.

Your second choice is to handwrite a will and sign it. This is known as a holograph will or Eigenhändiges Testament in German. It can be in any language, although again – your heirs may have to pay to have it translated later.

This option also avoids certain expensive legal fees – and you can state which country’s law you want to apply. However, for it to be valid, it must be entirely handwritten and include the date and place of signature. It cannot be typed and signed. If you’re concerned about the will going missing, you can deposit it with your responsible probate court for a fee of €75.

The final option is to write a public testament – which is prepared by a German notary. These wills are pretty ironclad but can be expensive – with fees that differ depending on the size of the estate. Once prepared, the notary will then file it with the public registry – so there is always a record of it.

READ ALSO: Do foreigners in Germany owe tax on money that is inherited from overseas?

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