Financial expert analyzes the impact of increased fruit and vegetable prices on consumer behavior

Financial expert analyzes the impact of increased fruit and vegetable prices on consumer behavior

According to a report by www.tagesschau.de,

According to the German Fruit Trade Association, Germans are consuming less fruit and vegetables due to increased prices. Per capita consumption in Germany is below the World Health Organization's recommendation, which is attributed to higher prices. Food prices have again risen above average by 3.8 percent year-on-year. Companies in the sector not only complain about inflation, but also about too much bureaucracy.

German households have consumed less fresh fruit and vegetables in recent months due to increased prices. The per capita consumption of 287 grams is well below the WHO recommended amount of 400 grams. Although the inflation rate in Germany fell to 2.9 percent in January, food prices rose again above average by 3.8 percent year-on-year. Since 2022, food prices have risen by around 30 percent.

The decline in fruit and vegetable consumption in Germany could have long-term effects on the market and the financial sector. The companies in the sector not only suffer from the increased prices, but also from the high level of bureaucracy and documentation requirements, which leads to higher costs. This could have a long-term impact on companies' profitability and competitiveness.

Importing countries such as Italy and Spain could also be affected by the declining fruit and vegetable consumption in Germany. Since a large proportion of the fresh fruit and vegetables sold in Germany comes from abroad, falling sales could have long-term negative effects on producers in other countries. In addition, prices for consumers in Germany could also rise further if lower demand continues.