Yunus Ulger
WALL – Inflation in Germany, which reached 7.3 percent, the highest rate in 40 years, and the 84 percent increase in energy prices hit Turkish immigrants hard. While one of the main reasons is that Turks generally work low-income jobs, the fact that most of them live in houses with poor insulation also increased the bills.
According to research by the Hans Böckler Foundation, which is affiliated with the German Trade Union Confederation (DGB), the record inflation in the country hit households with low incomes and children in particular. People of Turkish origin also belong to this segment of society. Foundation officials indicated that single people and those with high incomes are less affected by inflation. He noted that the increase in producer prices has not yet fully impacted consumers. Accordingly tConsumer price increases are expected to continue.
Caner Aver, an expert at the Turkey and Integration Research Center (TAM) Foundation in Essen in the Ruhr area, said that the household income of Turks is quite low compared to Germans and other immigrants, so they live in old houses with poor thermal insulation. Aver explained that the astronomical energy price increases have significantly increased the energy expenditure of the Turkish population.
According to data from the Federal Statistical Office for 2021, quoted by foundation expert Aver, the average monthly net income of all households in Germany is 1,692 euros. The average monthly net income is 1,776 euros for German households, 1,375 euros for immigrants and 1,237 euros for immigrants from Turkey. In addition, the segment of society with the highest unemployment rate is also of Turkish descent. While the general unemployment rate in Germany is 3.56 percent, it is 7.05 percent for people of Turkish origin.
The increase in consumer prices in Germany reached 7.3 percent as of March 2022, the highest rate in the last 40 years. Producer price inflation, on the other hand, was 30.9 percent, the highest since 1949. The main reason for the rise in inflation is the energy crisis caused by Russia’s attack on Ukraine.
In March 2022, energy prices rose by 84 percent compared to the previous period. At 12.2 percent, the increase in staple foods was well above the general inflation rate. Vegetable oils were up 72.3 percent, butter was up 56 percent, beef was up 31.1 percent and coffee was up 20.5 percent. While sunflower oil and rapeseed oil products declined in Germany, the price per liter rose from 1.5 euros to 5 euros.
According to the results of the survey by the opinion research company Forsa, 68 percent of the population in Germany stated that they were severely affected by price increases. 30 percent of respondents said they were unaffected by the high costs, while the remaining 2 percent said they were not affected at all by inflation. While 69 percent of those surveyed said they wanted to save on electricity and heating, 72 percent said they would save on petrol and diesel.
The federal government, on the other hand, is providing a one-off energy aid of 300 euros to reduce the inflationary burden on low-income earners. In addition, starting next June, public transport vehicles can be used nationwide for three months with a monthly pass for 9 euros. The cheap ticket does not include high-speed trains.
Social organizations and consumer centers are calling for the abolition or reduction of VAT on staple foods. Federal Minister of Agriculture Cem Özdemir also supported this demand. Özdemir had previously proposed reducing VAT on healthy food.
The Federal Association of Retailers, on the other hand, opposed the demand for a VAT deduction. In the association’s statement, he explained that high-income segments that are not affected by inflation would also benefit from the VAT reduction and that they did not think this was right. Instead, he argued that it would be more appropriate for the government to provide financial assistance to low-income groups.
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