ANP
NOS Nieuws•vandaag, 01:35
The purchasing power of the Dutch population fell by 1.2 percent last year. This is the largest decline in forty years, according to figures from Statistics Netherlands. The decline is mainly the result of high inflation in the past year.
Only during the severe recession in the 1980s and the years after the financial crisis of 2008 (2009-2013) did purchasing power decline by more than one percent. Over the past ten years, purchasing power has consistently increased, even during the corona crisis.
The decline in purchasing power was mainly due to high inflation as a result of the sharp increase in energy prices after the Russian invasion of Ukraine. Although incomes rose by an average of 5.5 percent, the estimated inflation was 6.8 percent.
Retirees suffered the most in their wallets, with an average decline of more than 3 percent. The majority had too high an income to qualify for energy allowance, for example. Low-income retirees did improve.
Only low incomes improved
Only low-income households improved in terms of purchasing power. This was due to the energy allowance they received, in most cases 1,300 euros. In addition, almost all households received a 190 euro discount on their energy bill in November and December. Without such measures, purchasing power would have fallen even faster, says Statistics Netherlands.
By the way, outgoing Minister Schouten (Poverty Policy) announced yesterday that the vast majority of people with a low income will also receive a supplement of at least 1,300 euros this year for high energy costs.
2023-09-13 23:35:19
#year #Netherlands #experienced #largest #decline #purchasing #power #forty #years