Last week, we looked at the wide variation in inflation experienced by different households
Which households are impacted most? What is the effect of the categories and products in their basket?
Lower income groups are much more exposed to higher levels of inflation.
With the example of Germany, mean inflation rates by household in Q2 this year were between 7 to 8%. However, the average inflation for lower income households was 3 to 4% higher than for higher incomes. The impact on brands will also vary as a result.
There is significant variation in the level of inflation by category.
In common with analysis across several countries (Pick of the Week 39/2022), category level inflation in Germany varies widely from deflation in many cases to very high levels in others. Whilst variation across categories is always the case, the dispersion now is much more significant and the category balance by household will impact their inflation experience.
High inflation households buy more Private Label and from Discounters.
Households in Germany that are experiencing high inflation spend more on Private Label and Discounters. For Q3 overall inflation in prices paid was just over 7% whilst PL was over 13% and Discounters over 10%. This is in common with other countries (Pick of the Week 39/2022).