Purchasing power of lower incomes takes a big hit

A study by the Labor Institute of the General Confederation of Greek Labor (INE GSEE) has confirmed that the collapse of the purchasing power of households, especially those living close to the poverty line, was caused by the rising course of inflation, which is now the most important source of instability in the Greek economy.

INE GSEE’s Economic Developments Bulletin documents the dramatic decrease in incomes, the decrease in purchasing power, mainly of the poorest households, and the increase in social inequalities.

According to the data processed by the scientific partners of GSEE, from April 2022 onward, the loss of purchasing power of those on the minimum wage in Greece is estimated at around 19%.

Especially for households with a monthly income lower than 750 euros, the loss is put at 40%.

Also, the report stated that for households with an average income of €1,100 per month, the loss is between 9% and 14%.

In the highest income brackets the loss of purchasing power is lower than 11% and decreases as the income level increases.