Purchasing power takes sharp dive in Germany

BERLIN (AA) - Real wages in Germany fell last year more than at any time since the figure started being recording in 2008, according to data released on Tuesday.

High inflation of 7.9% has completely neutralized the 3.4% increase in nominal wages in Germany, pushing the purchasing power of wage earners into negative territory, the Federal Statistical Office (Destatis) said in a press release.

According to the agency, real wages in Germany fell by an average of 4.1% compared to 2021.

Real wages have already been on the decline for two years due to the coronavirus crisis, said Destatis, adding that in 2020, the use of short-time work led to a negative wage development.

Rising inflation was responsible for the continued drop in real wages in 2021 and 2022, it added.

The agency also stated that due to a change in its calculation scheme, no development could be shown for individual sectors of the economy.

BERLIN (AA) - Real wages in Germany fell last year more than at any time since the figure started being recording in 2008, according to data released on Tuesday.

According to the agency, real wages in Germany fell by an average of 4.1% compared to 2021.

Real wages have already been on the decline for two years due to the coronavirus crisis, said Destatis, adding that in 2020, the use of short-time work led to a negative wage development.

Rising inflation was responsible for the continued drop in real wages in 2021 and 2022, it added.

The agency also stated that due to a change in its calculation scheme, no development could be shown for individual sectors of the economy.