IW study: Consumers now have to work longer for a Magnum ice cream

Created: 08/10/2022, 15:20

By: Lisa Mayerhofer

An ice cream costs the Germans an average of five minutes of work.

© Rainer Jensen/dpa

People in Germany can now afford more products for an hour's work than 30 years ago.

But inflation is now weakening purchasing power – even for popular ice cream brands.

Cologne/Berlin – People in Germany often have to work less long hours than they did 30 years ago in order to be able to pay for the same products and services.

This was the result of calculations by the German Economic Institute (IW).

For an hour of work in June 2022, people could on average afford a visit to the cinema, 500 grams of coffee beans, a stamp for a standard letter, a kilogram of mixed bread and a bottle of beer.

In 1991, people had to work seven minutes longer for this.

Ice cream lovers have to work longer for a Magnum in 2022 than in 2020

Compared to 2020, however, the so-called purchasing power per wage minute for these products has fallen overall: Two years ago, people only had to work an average of 56 minutes for this.

The calculations of the IW are based on the price developments for products and services as well as on the net earnings of the Germans per hour.

"Since German reunification by 2021, the purchasing power per wage minute has increased by 27 percent," said Christoph Schröder from the IW.

"And now, of course, we already have losses due to the high inflation rate."

From this point of view, the researchers also analyzed the developments in the popular ice cream classics.

How long do you have to work to afford a Magnum or Capri?

To do this, the researchers calculated the average net earnings per hour, inflation and price developments for ice cream brands.

The Magnum and Nogger brands have become more expensive in recent years.

Combined with inflation, this means that in 2020 an ice cream lover had to work six minutes and 48 seconds for a magnum, compared to seven minutes and 17 seconds in 2022, despite increased wages.

It is only the other way around with the Domino, Capri and Cornetto varieties: Two years ago, three minutes and five seconds of work were required for the first two – today it is only two minutes and 55 seconds.

As a percentage, Domino and Capri have lost the most in price of all the ice cream classics examined.

The price of the cornetto falls somewhat more slowly – here, instead of four minutes and 57 seconds, four minutes and 40 seconds have to be worked. 

Inflation in July at 7.5 percent – ​​purchasing power falls

Overall, inflation is weakening people's purchasing power: According to the Federal Statistical Office on Wednesday (10 August), the annual rate of inflation was 7.5 percent in July.

In June, consumer prices rose by 7.6 percent compared to the same month last year.

Above all, price jumps in energy as a result of the Ukraine war and rising food prices have been heating up inflation in Germany for some time.

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"There are also special factors with food, for example when there were bad harvests," said Schröder.

"Currently, of course, we are seeing high price increases." According to calculations by the IW, for example, people had to work three minutes longer for 2.5 kilograms of ware potatoes in June 2022 than in 1991. The potatoes were only earned after 13 minutes at work.

A visit to the hairdresser to wash and blow-dry hair for women has also become more expensive.

The Germans have to work an hour and 11 minutes for this – twelve minutes longer than in 1991. “For those who tend to use a lot of services, life hasn’t become as much cheaper for them than for other people,” confirmed Schröder.

After all, people would have to spend significantly less working time on a television set.

While it was 79 hours and four minutes around 30 years ago, the television was earned after just 17 hours and 58 minutes this year.