Dhe Germans put less money aside in the face of high inflation. The savings rate of private households adjusted for seasonal fluctuations was 11.1 percent in the first half of the year, as the Federal Statistical Office announced on Tuesday on the occasion of World Savings Day on October 28th. This roughly corresponds to the level reached before the outbreak of the corona pandemic in 2019.
However, the savings rate is far below the record value of 18.2 percent measured in the first half of 2021. At that time, travel, restaurant and concert visits were not possible as usual due to corona-related restrictions, which is why a lot of money ended up on the high edge.
“Sharp price increases, especially for energy and food, are currently making it increasingly difficult for many households to put money aside and save,” emphasized the statisticians. At 10.0 percent, the inflation rate was the highest since 1951, which is eroding the purchasing power of consumers. According to economists’ forecasts, private consumption will initially fail to support the economy.
11.1 percent savings rate
“For the first half of 2022, this means that private households saved a seasonally adjusted average of 11.10 euros for every 100 euros of disposable income,” the statisticians explained about their survey. This corresponds to an average monthly amount of 240 euros per inhabitant. However, there are very clear differences depending on income level, propensity to save and life situation.
“While some households were still able to put a lot of money aside, others had nothing left at the end of the month,” said the Federal Office. The aggregate savings volume of private households for the first six months of this year is estimated at 121.2 billion euros.
The ratio results from the savings of all private households measured against their total disposable income including company pension entitlements. Valuation-related changes such as price gains or losses in the case of shares and changes in the value of real estate do not count as savings because they did not arise from earned income.
