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German household spending goes up

germanyRenters in Germany are finding it harder to meet their payments as the costs reach more than a-third of their normal household budgets.

The average household spends some €2,448 each month, according to official agency Destatis.

But rents have crept up to about €845 per month whereas in 2008 rents were an average of €657.

The share of household finances required for rent stands at 34.5% compared to just below 32% in 2008.

Housing costs are lower in the eastern states of Germany, with an average demand of around €684. Nevertheless, the percentage of household spending required of 33.4% was very similar.

According to the officials, other average expenditures included food and clothing (19%), transport and telecoms (17%) and leisure and entertainment (16%).

Destatis found that household consumption has continued to rise steadily in recent years due to high employment, salary increases and low interest rates that do little to encourage saving.

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