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EXPLAINED: The grocery products in Germany getting more expensive

Everyone is talking about consumer prices rising in Germany. What does it mean in real life?

A customer with a €5 note. Products are getting pricier in Germany.
Readers of The Local shared their inflation-busting tips. Photo: picture alliance/dpa | Moritz Frankenberg

Inflation keeps going up – and on Wednesday the Munich-based ifo institute, said it expected consumer prices to rise from 5.1 to 6.1 percent in March – which would be the steepest rise in consumer prices since 1982.

It comes as residents have already been feeling the pinch at the checkout (and on energy bills) over the last few months with the cost of living spiralling upwards. And Russia’s war on Ukraine is exacerbating the issue further. 

READ ALSO: German consumer prices set to rise steeply amid war in Ukraine

According to research by German site Focus Online and trade publications like the Lebensmittel Zeitung, several supermarkets are reacting by pushing prices up further. 

Experts say that Aldi and Lidl tend to set the tone in German supermarkets because they are among the most important customers for the likes of farmers, manufacturers and distributors. 

Last week, Aldi Süd and Aldi Nord increased the price of about 140 items in their standard assortment. Adding flavours, sizes and other variations of these items, the number quickly climbs to 400 products.

A spokesperson for Aldi Nord and Aldi Süd said the market had been strained for months by challenges including the Omicron wave of Covid-19, the international shortage of truck drivers and the increased costs for energy and raw materials.

READ ALSO:

“The situation has been exacerbated by the war in Ukraine,” said the spokesman. As part of the discounter model, Aldi reduces sales prices when purchase prices fall and increases sales prices when purchase prices rise.

“We would like to point out that our margins do not change as a result of this move,” said the spokesman. 

According to Focus Online, discounter giant Lidl also recently raised the prices of branded products, while there have also been noticeable increases at Rewe and Edeka.

Which products are you paying more for?

According to Focus, the prices of several food and drugstore items have massively increased since the end of January 2022.

Some of the price hikes on products include:

Pasta (up to 40 percent increase)

A supermarket employee in Offenburg stocks pasta in 2020. Pasta has been increasing in price in Germany.

A supermarket employee in Offenburg stocks pasta in 2020. Pasta has been increasing in price in Germany. Photo: picture alliance/dpa | Patrick Seeger

Detergents (up to 20 percent)

Mineral water (over 10 percent)

Dairy products (up to 5 percent)

Coffee (up to 10 percent)

Paper handkerchiefs (up to 15 percent)

Toilet paper (up to 10 percent)

Kitchen roll (up to 20 percent)

Sunflower oil (up to 100 per cent)

READ ALSO: Germans urged not to panic-buy over shortage fears

In most cases, prices per product increased between five and 50 cents.

One example is mixed bio mince from Aldi Süd. While the 400-gram tray cost €3.59 in January, customers now pay €3.99 for it. At Rewe, customers now pay around €5.59 for mixed organic mince instead of €4.99 (January 2022).

The mineral water from own-brand Quellbrunn no longer costs 19 cents at Aldi, but a hefty 25 cents. Rewe seems to have followed suit. Those who put the mineral water from their label “Ja” in their shopping trolley now pay 25 cents for the 1.5-litre bottle at the checkout.

Meanwhile, price hikes for sunflower oil and rapeseed oil are particularly steep.

While last year customers paid between 89 and 99 cents for a bottle of oil, the product now costs up to €1.99 from some retailers. This is of course down to production and harvest stagnating because Russia is waging a brutal war against Ukraine.

A purchasing manager of a well-known discounter told Focus Online: “It’s possible that customers will soon have to pay over three euros for a bottle of sunflower oil.”

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BANKING

Reader question: Is it safe to give out your IBAN in Germany?

Even in privacy-obsessed Germany, you'll often be asked to provide your bank details - or IBAN - when purchasing products or setting up contracts. Is it always safe to do so - or is there a chance of fraud?

Reader question: Is it safe to give out your IBAN in Germany?

When it comes to personal data concerns, there’s arguably no nationality who is more keen to keep their private lives private than the Germans. 

This was summed up recently at one cashless business in Berlin, where the owner revealed that people were concerned that paying by card would let the company see into their bank account. 

But in spite of the general suspicion towards digital technologies, there are plenty of situations in Germany where you’re likely to be asked for your International Bank Account Number – or IBAN for short – and are expected to give it willingly.

You may be setting up a new contract for your electricity supply, a new mobile phone or for a rental flat. Or you could be buying something online via a direct debit or hunting for bargains on an online marketplace – in all these cases, giving your IBAN to the seller or company is a must. 

READ ALSO: Why German banks are getting more customer complaints than ever

Though simply jotting down your details is treated as par for the course, are there situations where consumers should be a bit more cautious? 

Here’s an overview of what you should know about the risks of giving out your IBAN and how consumers can best protect themselves against fraud. 

Is giving out my IBAN safe?

According to Matthias Lange, payment methods expert at the German Association of Banks (BVDB), the answer is generally yes – and often there are no ways around it.

“For example, if I want to pay my rent or have my money transferred to my account for a sale via classified ads, I have to give the account details to my landlord or the buyer,” Lange explained on the ING website. “And if I buy something by direct debit, they will also ask for my account number.”

Lange also points out that it’s perfectly normal for companies to include their IBANs on letters and bills they send out, which shows just how relaxed their are about customers having this information. 

What could a fraudster do with my IBAN?

Very little, is the answer – though there are options. 

The most important thing to know, however, is that nobody will be able to access your bank account using the IBAN alone.

In online banking in the EU, two-factor authentication is a minimum. Normally, that means you’ll need a password to access your account, as well an authentication app or a code that’s sent to your mobile phone.

All of this makes it much harder for criminals to access your financial data and make fraudulent transactions.

READ ALSO: How to grow your savings in Germany during high inflation

However, there is one way that fraudsters could try to use your IBAN to steal money from your account: setting up a Lastschriftmandat, or a mandate for a direct debit. This can usually be done by setting up a simple form and sending it off to the bank or company in question.

Even in this situation, however, the problem can be easily resolved. 

Woman paying by card online

A woman checks her card details while completing a purchase online. Photo: picture alliance/dpa/ZHPH Production / Stocksy United | N26 GmbH

“If a fraudster has actually completed a direct debit with your account details, it is possible that the amount will initially be debited from your account, but you will be able to get the money back quickly and easily,” said Lange.

This strategy is also a risky one for any criminal, since the bank will have plenty of information on hand about the person that the money should be transferred to.  

Another old-fashioned option is for someone to intiate a paper translation by forging your signature on a paper transfer form – though this would probably arouse suspicion as this type of transfer is so rarely used today.

Lange also points out that this would involve the criminal supplying their bank details, and that a swift response to the issue would enable any victims to get their money back right away. 

How can I best protect myself from fraud? 

Though giving out your IBAN is generally safe, you should still remain cautious about giving out more details than are necessary – particularly when it comes to things like passports or information that’s included on personal IDs. 

A major red flag for phishing attempts – that is, attempts to steal your data – is if you are approached out of the blue and asked for specific data.

That could be through an unexpected phone call, a link to a website or an email that looks like it comes from an official source, like a credit card company or a bank. In these cases, a good rule of thumb is that no bank will contact you and ask for a tonne of personal details, and especially not passwords or pin numbers. 

In other circumstances, such as applying for a flat, if are asked for extra information – like your passport and bank account statements – make sure that the housing company is reputable before handing all the information over. 

If in doubt, simply get in touch with your bank and ask them for their advice. It’s in their interests to avoid fraudulent transactions on your account, so they will be more than happy to help.

Another important thing to do is to check your bank account regularly for unexpected transactions. You can generally recover any money that’s taken from you fairly easily, but the quicker you respond, the better.

According to Lange, there are key deadlines to know about if you want to challenge or withdraw a direct debit transaction.

READ ALSO: Why it’s almost impossible to find a free bank account in Germany

In normal cases, you have eight weeks to do this – but if the transaction is made via an unauthorised madate, this can be extended by more than a year. 

Though there are no official figures on the level of IBAN fraud carried out in Germany, Lange believes it’s nothing in comparison to the some 11 billion direct debits that are completed in the country each year.

A more common practice is for criminals to buy goods via invoice and get the invoice sent to an unwilling addressee. 

“But that’s more of a problem for the retailer and has nothing to do with fraudulent IBANs,” Lange explained. “And of course, you don’t have to pay the invoice.”

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