Due to high inflation, Germany’s employees have less money in their pockets despite wage increases. Wages, including special payments, were 2.9 percent higher in the second quarter of 2022 than a year earlier, as calculated by the Federal Statistical Office.
Loss of real wages: Wage increases are eaten up by inflation
However, because consumer prices rose by 7.6 percent during this period, the bottom line, according to the Wiesbaden authorities on Monday, was a drop in real wages. The statisticians put the price-adjusted drop in earnings at 4.4 percent. In the first quarter of the current year, real wages fell by 1.8 percent compared to the same quarter of the previous year.
Now the high rate of inflation has once again more than eaten up the increase in nominal wages. Even in the years 2020 and 2021, which were shaped by the corona pandemic, employees had to accept real wage losses after many years of upswing.
In the current year, inflation has remained stubbornly above the seven percent mark for months, even if there has recently been some relaxation thanks to government relief. However, inflation in Germany could rise again in autumn. (dpa)
Source: Kölner Stadt-Anzeiger – Kölner Stadt-Anzeiger by www.ksta.de.
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