The goal of this assignment is to discover the impact of the Corona pandemic on consumer prices. In addition, the paper will summarize the most important aspects of the Corona pandemic and provide information on the definition of the inflation rate.
People are surrounded by headlines "More than 5000 Covid-19 patients in intensive care". Due to the Corona pandemic, the daily life of the people is limited to their safety. Considering the economic consequences, many sectors are at risk, for example, the international division of labour and the industry. The Institute for Economic Research ifo informs that the most affected are the retail, hotels, and restaurants. However, has the Corona crisis also affected prices?
The Federal Statistical Office answers this question with yes, when it says that the Corona crisis has influenced prices at various economic levels. This means that there is a price influence from import to production to trade and then finally to the end consumer and export. On the world market, there have been strong price reductions, which affect the consumer price. In connection with this, we see a change in the inflation rate, which was 0.9% in April 2020 and increased by 0.4% just one month later. But is this kind of inflationary change good or bad for our economy? It is a well-known fact that a low inflation rate is good for the economy, while a high rate is bad. The reason is that at a high inflation rate the citizens lose faith in the currency and the purchasing power decreases significantly. Prices have risen steadily due to a shortage of supply, especially for pandemic items such as protective masks and disinfectants, and for medicines such as ibuprofen and paracetamol. All of which are largely manufactured in China.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Background and Relevance
- Objectives
- Basics of inflation rate and consumer price index
- Definition consumer price index and inflation
- Cause and consequences of inflation
- Corona pandemic
- Measurement and Data
- Challenges of price survey in the corona pandemic
- Procedure of pricing in the Corona Pandemic
- Consumer price index - all categories
- Results
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
The aim of this paper is to investigate the impact of the Corona pandemic on consumer prices in Germany. It explores the definition of the inflation rate and analyzes the effects of the pandemic on price dynamics.
- Inflation rate and consumer price index
- Causes and consequences of inflation
- Impact of the Corona pandemic on the German economy
- Price dynamics in the context of the Corona pandemic
- Measurement and data collection challenges during the pandemic
Zusammenfassung der Kapitel (Chapter Summaries)
The introduction sets the scene by discussing the economic consequences of the Corona pandemic, highlighting the impact on various sectors and the influence on prices. It also outlines the objective of the paper, which is to explore the impact of the pandemic on consumer prices in Germany. The second chapter delves into the basics of inflation and the consumer price index, providing definitions and explanations of their significance.
The third chapter focuses on the measurement of inflation data during the pandemic, discussing the challenges faced in conducting accurate price surveys. It further examines the procedures for price determination during the pandemic and highlights the role of the consumer price index in measuring overall price changes.
The fourth chapter presents results and analyses the data gathered on the impact of the Corona pandemic on consumer prices in Germany. It examines the changes in the inflation rate and explores the contributing factors behind these shifts.
Schlüsselwörter (Keywords)
The primary keywords and focus topics of this paper include inflation, consumer price index, Corona pandemic, economic impact, price dynamics, measurement challenges, and Germany.
- Quote paper
- Lejla Rahe (Author), 2021, The Impact of the Covid-19 Pandemic on Inflation Dynamics in Germany, Munich, GRIN Verlag, https://www.grin.com/document/1292435
