Purchasing power declined for the fourth year in a row – Focus on News

Purchasing power declined for the fourth year in a row – Focus on News

The purchasing power thus decreased for the fourth consecutive year, in line with the economic crisis and rising unemployment in these years. The continuing loss of purchasing power is in stark contrast with the growth of purchasing power in the period 1985-2009 (average 1.8 per cent per year), when there was a slight decrease.

only in 2005 Large loss of purchasing power in the self-employed in the plus
Most groups saw the continued economic malaise their purchasing power decline in 2013 only 0.4 percent of employees went slightly up. Self-employed yielded 3.3 percent in the most. However, with them spread wide. While a quarter of self-employed in purchasing power in 2013 with at least 16 percent down, it grew at an equally large group with 10 percent or more.

Also retired populations in min
also benefit recipients resulted in significant purchasing power. For retirees purchasing power for the fourth time, this time significantly decreased successively, by 3.0 percent. This is partly because many supplementary pensions are not indexed, but they were even cut. Furthermore deAOW retirement age went up, which will make some people got a state pension hole.

Lowest incomes provide the most
If the population is divided four equally sized income groups, it appears that half of the low income there declined more strongly in 2013 than those with higher incomes. The purchasing power declined by 1.5 percent in the strongest quarter of the people that is in the Create a after-lowest income group. Precisely in this group are relatively many retirees who saw their purchasing power dwindle. Because workers are overrepresented among those with higher incomes, the income drop fell into this group along.

Changes in personal circumstances play a role How
purchasing power develops depends, among other on issues that everyone are a given fact, as a collective wage inflation or changes in tax rules. This is called static purchasing power. People’s income and thus their purchasing power, however, can also change considerably for example finding or losing a job, working overtime or getting a performance bonus. This counts in the so-called dynamic purchasing power.

have these personal changes generally have a positive effect on purchasing power. In diameter that effect came from 1997 to nearly 1 percentage point extra purchasing power per year. In economically difficult times, as in the years 2009-2013, that effect is much smaller.