Hole in family fund - Inflation eats into income
The inflation has devoured the latest income growth in Germany. The median income, according to the Statistical Federal Office, grew by 5.1 percent from 2022 to 2023 - but the inflation rate was 5.9 percent. Sahra Wagenknecht of the Left Alliance inquired about the data at the authority. Compared to the years 2021 and 2023, the gap is even larger. "The Germans have significantly become poorer," concludes BSW chair Sahra Wagenknecht from the figures.
The inflation accelerated after Russia's attack on Ukraine in early 2022 due to the increased cost of energy and consequently production and imported goods. The European Union imposed import restrictions on Russia and imposed further sanctions. Moscow stopped gas exports to Germany via the Nord Stream pipelines before the pipelines were damaged by an attack.
Under the Line: A Minus
Trade unions tried to offset price hikes with high wage agreements, and pensions were significantly increased. However, on average, there is still a deficit in household budgets. This is particularly evident when looking at figures before the Ukraine crisis: Inflation was a total of 13.2 percent from 2021 to 2023. Median disposable income grew in the same period by only about 5.8 percent from €33,558 to €35,510.
"Median income" - usually referred to as median income - is a statistical quantity that gives less weight to very high and very low incomes than "average income." However, the trend is similar for both statistical quantities: The average net income per household increased from 2021 to 2023 from €41,887 to €43,795. This includes not only wages but also other income sources such as rental income or transfer payments.
Wagenknecht blames the government for the development. "Seven percent less purchasing power since 2021 for the middle class is a historic loss of prosperity, for which the traffic light coalition is primarily responsible," commented the party founder. "The traffic light coalition was and is an inflation driver and a brake on wages at the same time." She criticized the economic sanctions against Russia once again and an energy policy driven by ideology with special taxes. The government did not come close to offsetting inflation for pensions and the minimum wage.
The minimum wage rose to €12.41 per hour at the beginning of the year, with an additional 41 cents coming into effect for the next New Year's Day. Pensions rise by 4.57 percent in July. A year ago, they rose by 4.39 percent in the west and 5.86 percent in the east.
- Sahra Wagenknecht, from the Sahra Wagenknecht Alliance in Germany, expressed concerns about the inflation data from the Federal Statistical Office.
- The inflation rate in Europe, particularly in Germany, increased significantly after Russia's attack on Ukraine in 2022.
- Despite high wage agreements by trade unions and pension increases, families in Germany are still facing budget deficits due to inflation.
- The European Union imposed import restrictions on Russia and further sanctions following Russia's actions, which affected energy and production costs.
- The Sahra Wagenknecht Alliance in Germany criticizes the traffic light coalition for the inflation-driven loss of prosperity and the brake on wages.
- The government failed to offset inflation for pensions and the minimum wage, which saw minimal increases during this period.
- Russia, in response to EU sanctions, stopped gas exports to Germany via the Nord Stream pipelines, exacerbating the inflation situation.
