Germany's food inflation slows—but political pressure for VAT cuts grows

A dramatic slowdown in food price hikes hasn't calmed fears over household budgets. Now, politicians demand tax relief—and a watchdog to stop corporate profiteering.

, and Administrator

2026 March 28 . 3:04 AM

1 min read

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Germany's food inflation slows—but political pressure for VAT cuts grows

Food prices in Germany climbed by just 1.1% in February 2026 compared to the same month last year, a sharp drop from January's 2.1% rise. Despite the slowdown, concerns over affordability have grown, prompting calls for urgent action from political leaders. Jan van Aken, leader of the Left Party, has demanded an immediate cut to value-added tax (VAT) on food. He proposes eliminating VAT entirely on staple goods and reducing it to 7% for other groceries. His goal is to ease financial pressure on households quickly.

Van Aken has also warned that food corporations could exploit the situation to inflate profits. To prevent this, he wants a government agency to monitor pricing and corporate behaviour. His demands extend to CDU leader Friedrich Merz and SPD co-leader Lars Klingbeil, urging them to act without delay. A coalition task force, including CDU/CSU and SPD members, will meet on Friday to tackle the economic fallout from the Iran conflict. Rising fuel costs have already pushed food prices higher, and Van Aken fears further spikes if no measures are taken.

The proposed VAT cuts aim to lower grocery bills for consumers as soon as possible. A new price-watching agency would track corporate pricing to prevent unfair markups. The task force's upcoming meeting will determine whether these measures gain cross-party support.