“Real Wage Decrease: How Inflation Is Affecting Employee Purchasing Power”

2023-04-24 07:00:24

Inflation eroded the purchasing power of employees last year. While nominal wages have increased slightly, they have fallen sharply on a real basis, the Federal Statistical Office (FSO) said on Monday.

Given an average annual inflation rate of 2.8%, real wages fell 1.9% year on year, according to calculations by federal statisticians, while in nominal terms they rose by 0.9%.

For the main collective labor agreements (CCT) covering nearly half a million employees, nominal wage growth stood at 0.3%, the statement said.

The inflation in 2022 was mainly linked to the rise in the prices of gas, petroleum products, cars and housing rents.

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