DIa study: Inflation leads to restrictions in consumer habits in Germany - financial expert analyzes study results

DIa study: Inflation leads to restrictions in consumer habits in Germany - financial expert analyzes study results

According to a report by www.n-tv.de,

The high inflation in Germany has led to restrictions on the consumption habits of many people. A study by the German Institute for Retirement Provision (DIA) shows that 55 percent of those surveyed are switching to cheaper food in order to cope with price increases. Less frequently, 30 percent said they drove their car less. Expenses for eating out (50 percent), clothing (46 percent) and larger purchases/leisure activities (43 percent each) are also on the cross-off list. In comparison, only 36 percent gave up traveling and 33 percent canceled subscriptions.

The impact of these changes in consumption on the market and the financial industry could be diverse. Increasing demand for cheaper products in areas such as food and clothing could lead to increased competition in these sectors. Companies that specialize in low-cost alternatives could see an increase in sales.

On the other hand, industries that specialize in larger purchases and leisure activities could experience a decline in demand and therefore a loss in sales. This could potentially lead to layoffs and general uncertainty in the financial industry.

In addition, the observation that a disproportionate number of women, older people and people living alone have already implemented severe consumption restrictions could lead to specific offers and products that are tailored to the needs of these groups.

Overall, the study shows that the inflation-related consumption changes can have a significant impact on the market and the financial industry and that adapting to the new consumption habits could be a strategic consideration for companies to deal with the changes.