Price increases are perceived as much higher than they actually are
34.2 per cent – that is how high consumers in Germany perceive the current price increases. This means that the perceived inflation in Germany is well above the actual measured inflation rate of 7.9 per cent (as of August 2022, destatis). This is the finding of the IU short study "The current inflation. How does it feel?", based on a representative survey in September 2022.
The short study on perceived inflation also reveals how great the concerns are due to rising prices and the areas in which consumers in Germany save the most.
Download short study as PDFPerceived inflation: The facts
34.2 %
91.9 %
Household goods, energy and travel
Price perception is determined by selective perception
"We always perceive inflation where we have consumer spending. People are interested in what they have to pay every day to meet their basic needs. If every time we go shopping we notice that the basket of goods is getting more expensive, we tend to exaggerate the real increase overall. In fact, prices are going down in other areas, such as TVs, computers, cars, it's just that we don't consume these things on a daily basis."
Prof. Dr. Johannes Treu
Professor of Business Administration at IU
Perceived inflation: Big worries, big savings?
When subjectively perceived inflation is particularly high, this has an impact on people's moods - and on their consumption behaviour.
Consumers are worried about the current inflation
91.9 per cent of respondents are somewhat or very worried about price increases in Germany, according to the short survey in September 2022.
*Answers to the question: "How worried are
you about the current inflation situation?"
Source: IU Short Study "The current inflation. How does it feel?"
Perceived inflation has an impact on consumer behaviour
Inflation is changing the consumption behaviour in Germany: consumers are saving more on household goods, energy and travel. You can find more details in the short study.
*Extracts from the answers to the question: "How much are you cutting back in the following areas due to the current inflation situation?" (only respondents for whom the respective option is applicable).
Source: IU Short Study "The current inflation. How does it feel?"
Feeling vs. reality: New figures on inflation in Germany
The IU Short Study shows the discrepancy between actual and subjectively perceived inflation rates in Germany. Read all the facts now.
More info on the IU study
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