Queue at a supermarket in Berlin. File photoMOSCOW, May 1.Germany is experiencing an «inflationary shock» in the food retail sector, while experts believe that this is far from over, according to an article in the German newspaper Handelsblatt.According to the publication, prices groceries rose by more than 6 percent in March, fresh vegetables rose by more than 14 percent, and vegetable oil by 17 percent.The German Industrial Union announced a double crisis in the German economy. At the same time, according to experts, this is «far from the end» of the price spiral. «We are experiencing an inflationary shock in the food retail sector. Low-income groups will be particularly hard hit,» Chehab Wahbi, a partner at EY-Parthenon consulting firm, said. demand will continue to grow. Before the escalation of the Ukrainian crisis, this figure was 77 percent. In addition, the consumer climate in Germany is deteriorating, Handelsblatt notes. Thus, in May, GfK predicts a decrease in the value of the consumer climate index by 26.5 points, which is the lowest value for the entire time of measurements. According to GfK industry expert Robert Kechkes, consumer budgets have decreased due to the general increase in costs. “Among the population, there is a huge lack of confidence, which is surprisingly reflected in consumer behavior,” he added. After the start of the Russian military special operation to demilitarize and denazify Ukraine, the West stepped up sanctions pressure on Moscow. Restrictive measures are directed primarily against the banking sector and the supply of high-tech products. Calls to reduce dependence on Russian energy resources have become louder in Europe. All this has already turned into economic problems for Western countries, causing fuel and food prices to rise. for sanctions
