Monday, February 6, 2017

Low Inflation allows purchasing power to rise – MIRROR ONLINE

wages rose, on average, the prices, however, significantly lower. The result: In the past year, the purchasing power in Germany has increased noticeably.

wallet with Euro coins


wallet with Euro coins

The low Inflation has caused wages in Germany to 2016 to be significantly higher in Real terms. According to provisional calculations of the Federal Statistical office, wages in nominal terms increased by 2.3 percent compared to the 2015, minus the Inflation rate of 0.5 percent, a real wage increase of 1.8 percent remained. This strengthens the purchasing power of the employees and can boost consumption.

The now calculated value is 0.1 percentage points lower than calculations, which had recently published the trade Union close to the Hans-Böckler-Foundation. It is the second-highest increase since the beginning of the statistical time series in 2008, however, as the authority announced. In 2015, real wages had risen by 2.4 per cent.

The statistician, attributed the growth in the past year, primarily to the low level of inflation and not to the increase in earnings. Inflation was down by 0.5 percent-considerably weaker than the average of the last 5 years (plus 1.0 percent). Nominal wages were increased by an average of.

especially low energy prices slowed inflation in the last year. Consumers are paying less at the gas station and for Heating.

In January, the Inflation in the Euro area rose compared to the previous month to 1.8 percent. The highest increase in four years, according to the Definition of the European Central Bank, however, was not a reason for concern: according to The ECB with a value of just under two percent of stable prices.


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