Inflation Eats Up Surplus Savings

Since the end of last year, private households have been increasingly drawing on the high deposits they accumulated in their bank accounts during the Corona crisis. As a result, consumption expanded in the first half of 2022 despite record inflation. As the savings cushions have now been used up and consumer prices are likely to continue to rise sharply, private consumption is likely to fail as an economic driver in Germany for the rest of the year.