Survey: A third of Germans expect the cost of living to increase Merz accuses Trump of “massive escalation” in Iran war Chancellor says German army could help clear mines from Strait of Hormuz German FM Wadephul says Germany now has clarity on US war aims Buy Deutschlandticket to offset rising fuel prices, transport minister says
Follow the latest developments from across Germanyon Saturday, March 28.
Germans fear new bout of inflation as fuel prices soar
Nine out of ten German residents expect the cost of living to increase in the coming months, according to a new YouGov survey for Postbank.
Meanwhile, nearly a third of the 2,028 people questioned believe the Iran war will cause significant price rises, adding to household budget pressures.
Germany, along with much of the rest of the world, saw inflation spike to decades-high levels following the pandemic and Russia’s full-scale invasion of Ukraine in 2022.
Nearly a quarter of those polled who earn less than €2,500 ($2,900) per month say they are barely able to cover their basic living expenses, compared to almost 13% of all respondents.
Food, energy and transport were cited as the top three cost pressures.
“The fact that more than half of respondents now rate their financial situation as worse than a year ago is also a consequence of the inflation surge in 2022,” said Ulrich Stephan, chief investment strategist for private and corporate clients at Deutsche Bank, which owns Postbank.
Many economists have predicted higher inflation in the next few months due to higher oil and gas prices caused by Iran’s effective closure of the Strait of Hormuz, a critical energy shipping lane in the Persian Gulf.
Economists think the extent of the price increases will depend on how long the war lasts.
Inflation in Germany fell to 1.9% in February, dropping back below the European Central Bank’s 2% target.
Welcome to our coverage
Guten Tag from DW’s newsroom in Bonn, where we’re closely following the latest news from across Germany, where the Iran war continues to dominate domestic headlines.
Chancellor Friedrich Merz has warned that US President Donald Trump’s decision to escalate the Iran war will affect not only the Middle East, but “all of us.”
In the past hours, the two leaders have traded barbs on Germany’s lack of involvement in the conflict. Merz said he told the US leader: “If you want us to help, then please ask us beforehand …not afterwards through the newspapers.”
Meanwhile, a new survey has shown that Germans are concerned about a new wave of inflation, especially in food, energy and transport costs.
One way to save money on vehicle fuel, says Transport Minister Patrick Schnieder, is to buy a Deutchlandticket — the low-cost monthy public transport card.
Stay with us for these stories and more from Germany.