Why the Spectre of Inflation Has Not Been Vanquished
In an interview with ZDFheute, Prof. Dr. Florian Stahl, holder of the Chair of Quantitative Marketing, explains why private labels are especially affected by inflation‑related price increases. He notes that this development is not new but has been observable for around 25 years.
Consumers who switch to cheaper products in times of economic uncertainty are increasingly turning to private labels in order to maintain their standard of living. However, these products, which often serve as inexpensive alternatives to well-known brands, have seen particularly strong price increases in recent years. According to Prof. Stahl, this is because supermarkets use their own brands as a buffer to pass on increased production costs. Branded products, on the other hand, often still have some leeway to compensate for price increases through lower advertising and marketing costs.
Even if inflation falls to around two percent in 2025 in line with the European Central Bank's (ECB) targets, Prof. Stahl expects prices for many products, especially private labels, to remain at a higher level. This is also due to the fact that higher wages will continue to support price increases. For many consumers, “cheapflation” (rising prices for private labels) will therefore remain an issue.