Money: High inflation eats wage increases on

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Germany's workers have less money in their pocket due to the high inflation despite increasing wages. Wages including special payments in the second quarter of 2022 were 2.9 percent higher than a year earlier, as the Federal Statistical Office calculated.

Im laufenden Jahr hält sich die Inflation seit Monaten hartnäckig über der Marke von sieben Prozent, auch wenn es zuletzt dank staatlicher Entlastungen etwas Entspannung gab. © Karl-Josef Hildenbrand/dpa In the current year, inflation has persistently over the seven percent mark for months, even if there was a little relaxation thanks to state relief.

Because consumer prices rose by 7.6 percent during this period, according to the Wiesbaden authority on Monday, the bottom line was a loss of real wage. The statisticians put the price -adjusted decline in earnings to 4.4 percent. As early as the first quarter of the current year, real wages had dropped by 1.8 percent for the previous year.

Now the high rate of inflation has more than consumed the nominal wage increase. Already in the years of 2020 and 2021 characterized by Corona pandemic, employees had to accept real wage losses after many years of the upswing.

In the current year, inflation has stubbornly stayed above the seven percent mark for months, even if there was a little relaxation thanks to state relief. In autumn, however, inflation in Germany could increase again.

Lower economic growth necessary to bring inflation down: BoC senior deputy governor .
OTTAWA — Bank of Canada senior deputy governor Carolyn Rogers says a period of lower economic growth is necessary to bring inflation down but that the bank still expects to accomplish its goal of lowering inflation without triggering a recession. The Thursday speech to Calgary Economic Development came one day after the Bank of Canada raised its key interest rate by three-quarters of a percentage point and indicated higher interest rates are on the way. According to the prepared remarks, Rogers said Wednesday's decision was based on concern from the governing council about the risk of inflation becoming “entrenched.” Canada’s year-over-year inflation rate was 7.

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