The President of the German Savings Banks and Giro Association expects that high inflation will soon weigh even more heavily on consumers.
(Photo: dpa)
Berlin The majority of Germans are increasingly reaching their financial limits due to high inflation. “We expect that because of the significant price increase, up to 60 percent of German households will have to use their entire disposable income – or more – monthly for pure living expenses,” said savings bank president Helmut Schleweis of the “Welt am Sonntag” in a preliminary report according to.
According to the newspaper report, the Volks- und Raiffeisenbanken are observing a similar development. “High inflation robs consumers of purchasing power, which reduces their ability to save,” said Andreas Martin, head of the Association of German Volksbanken and Raiffeisenbanken (BVR).
According to the article, the Greens are calling for a limit on the amount of permitted overdraft interest. The interest rate cap is intended to protect people from escalating costs, said Green finance politician Stefan Schmidt to the “Welt am Sonntag”.
More: Many people are saving less because of the massive increase in the cost of consumer goods. Some fear that they will have to liquidate their reserves from autumn.
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