What you have brewing....I'd call a collection of 'waves' on price increases. The VAT went from 7-to-19 percent (before Covid, it was 19 percent).....the gov't lowered it temporarily to restart positive numbers and get people active in eating out.
But in the 'waves' mix....both heating and electricity went up over the past three years. Then you add in the minimum wage and higher wage trend currently going on.
So when you to a traditional village restaurant.....you stand there in a state of shock where pricing is, and where it's going in 2024.
Last week, the wife and I went to a local Turkish operation. I had a pizza, and the wife had a Kebab. Total cost, with bottled water? In the 24 Euro range. Back in 2019....it would have been in the 16 Euro range. Even last year...it would have been near 20 Euro.
The local upscale place where I might have had a rump-steak, salad and glass of wine? It's up to around 32 Euro (per person). The traditional German restaurant where I might have ordered Cordon Blau? That went from 13 Euro to 17 Euro in the past year.
Prior to Covid, I'd suggest that working-class Germans ate out at least twice a month (to the good places) and picked up something on the way home at least three or four times a month.
I'd go and suggest that the trend will lessen in 2024, with one-third of business curtailed. For some....there won't be enough customers to operate six days a week.
Returning the VAT to 19-percent, but getting less tax revenue in the end? 2024 may end up being like that.
All of this leading to a voter-crisis in 2025.....where the economy is in continual freefall, and blame dumped upon the SPD, Greens and FDP? I would suggest some level of blame will be dished out.
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