Inflation hits low-income households particularly hard
According to the IMK, gas, electricity, heating oil and food are currently the biggest price drivers. Low-income families are particularly hard hit by this.
Photo: Patrick Pleul/dpa-Zentralbild/dpa
The average inflation rate is currently 7.9 percent. But not all households are equally affected. An institute for economic research has determined who will feel the inflation particularly badly.
06/27/2022, 10:16 am
Dusseldorf. Low-income households suffer the most from inflation. While the shopping basket of German households has grown by an average of 7.9 percent over the past twelve months, low-income households have had to pay 8.9 percent more for their usual purchases. This is the result of the Institute for Macroeconomics and Business Cycle Research (IMK) of the federal Hans Böckler Foundation in its inflation monitoring for the month of May.
According to the IMK, gas, electricity, heating oil and food are currently the biggest price drivers. These basic needs will weigh heavily on the expenses of poor families. In the basket of high-income households, on the other hand, they made up a significantly smaller proportion. At just 6.5 percent, high-income singles currently have the lowest inflationary burden.
“The increase in energy prices for households is having a greater impact on low-income households and the increase in food prices is having an even greater impact,” write IMK Director Sebastian Dullian and inflation expert Silke Tober. According to forecasts by the IMK, this trend is likely to accelerate in the coming months, since not all price increases for household energy in private households have yet taken place.
This increase is likely to be particularly strong if the Federal Network Agency actually allows suppliers to pass on increased purchase prices directly to consumers as part of a gas emergency plan, emphasize Dullian and Tober: In this case, the inflation rate could even reach double digits in the short term. » This will also hit low-income households particularly hard.
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