In Germany, following the recent rise in oil prices, fears are growing of further price shocks affecting everyday shopping, as many households have hardly any savings left. The trigger is significantly higher costs for energy, fuel, and daily groceries, which have noticeably increased the cost of living recently. In March, the inflation rate rose to 2.7 percent, while household energy and fuel prices were 7.2 percent higher than the previous year. The decisive risk factor lies in the lack of financial reserves, as only a small percentage of households can absorb further burdens. Those with low incomes are particularly affected, feeling the effects of price increases immediately when refueling, heating, and shopping. (stern: 15.04.26)
Savings are no longer sufficient for many
The financial situation of many consumers has worsened significantly, while everyday life has become more expensive. According to a survey, only about one-fifth of households still have sufficient reserves to absorb rising living costs. A much larger proportion, however, sees too little leeway, which is why the next wave of price increases could become a problem.
The situation is even more serious for those whose savings have already disappeared or never existed in the first place. Sixteen percent of those surveyed believe they have already completely used up their savings, and 22 percent had no significant reserves to begin with. Tanja Birkholz, CEO of Schufa, commented: “People are feeling the effects of the crisis directly through higher prices when shopping and refueling – especially those in lower income brackets, who no longer have any savings to cushion the blow.”
Fear of Energy, Fuel, and Further Price Increases
The fear of another surge in costs runs deep because many consumers are already experiencing the consequences directly at the pump and on their electricity bills. More than three-quarters of those surveyed expect prices to continue rising in general, while 76 percent anticipate additional burdens, particularly regarding electricity and fuel. This is why uncertainty is growing not only among low-income earners but also in households with previously stable finances.
The price pressure is closely linked to the recent disruptions in the energy markets, which have once again made everyday life in Germany more expensive. For the first time since December 2023, energy prices rose sharply again, with fuels and heating oil becoming significantly more expensive. While the German government responded with a temporary tax reduction of around 17 cents gross per liter on diesel and gasoline, it remains unclear how effective this relief will actually be in everyday life.
What the Price Wave Means for Consumers
For many families, every purchase now counts, while larger purchases are being postponed. Those without savings can barely cover additional payments, repairs, or new expenses. This intensifies the pressure on consumption, while simultaneously reducing the ability of many households to weather further crises financially.
This development is hitting the country at a vulnerable point because the price effects have a broad impact on everyday life. Rising energy costs often lead to higher costs in other areas, and uncertainty remains high for the coming months. As long as prices remain high or continue to rise, the fear of the next price shock is likely to persist among many consumers.