It increased by 10.2% household disposable income in the 3rd quarter of 2022, reaching 37.7 billion euros compared to 34.2 billion euros in the same period last year, according to yesterday’s report. ELSTAT data.

This result was supported by an increase in employment and wages, mostly minimum, a good tourist season, as well as government support measures. With a 10.2% increase in disposable income, inflation was nearly covered, the finance minister said in a statement on the matter. Christos Staikouras.

However, alleviating inflationary pressures by increasing disposable income does not equally affect all social groups. Research shows that inflation this is much more pronounced in lower income groups, who spend more of their income on consumption, than in higher income groups. Therefore, an increase in disposable income may not be felt even by those with the lowest incomes.

Revealingly, according to a recent study by the European Central Bank (The Impact of Recent Rising Inflation on Low-Income Households), the difference in real weighted inflation between the lowest and highest 20 percent income group has widened to 1.9 percentage points. in September 2022 compared to 0.1 p.m. a year ago, in a low inflation environment. Energy and food price inflation, in particular, hits the poor the hardest, as they are the ones who spend most of their consumption on food, electricity, natural gas and heating. In addition, the study notes that while the corresponding top 20% save 39.9% of their income, the bottom 20% have negative savings of -6.4% and therefore have no reserve. to protect against precision.

In a similar vein, the GSEE Economic Development Bulletin (November 2022), with reference to the Household Budget Study (INE-GSEE edit), mentioned the asymmetric precision effect and noted that while at incomes below €750, the loss in purchasing power (in September 2022) was up to 40%, in the next income group (751-1100 euros) it was 9%-14%, and in the remaining income groups it was below 11% and decreases as income increases.

Energy and food price inflation hits low incomes hardest.

According to yesterday’s ELSTAT (Quarterly Non-Financial Accounts of Institutional Sectors) data, along with a 10.2% increase in disposable income, consumer spending also increased by 12.7%, amounting to 36.7 billion euros against 32.6 billion euros in 3 th quarter of 2021.

The savings rate, defined as the ratio of gross savings to gross disposable income, was 2.6% compared to 4.8% in Q3 2021.

Gross investment in fixed capital of the non-financial services sector amounted to 3.8 billion euros. The share of investment in gross value added was 18.1% compared to 17.9% in Q3 2021.

According to Mr. Staikouras, at the level of 9 months, the increase in disposable income is 10 billion euros compared to 2019.

“This development,” the minister noted, “is the result of the ongoing economic policy, the main directions of which are the reduction of taxes and insurance premiums, the increase in the minimum wage, the strengthening of employment and the implementation of bold measures. to support households and businesses. Support that is also reflected in the increase – by 47 billion euros – of citizens’ deposits from 2019 to the present day.”