Inflation hits poorer families in Germany hardest: Study

BERLIN (AA) - Poorer families in Germany were hit the hardest by inflation in December, at 9.8%, while single people with very high incomes got off relatively easy with 7.1%.

The figures come from the monthly inflation monitor published by the Hans Bockler Foundation's Macroeconomic Policy Institute (IMK), based in Dusseldorf.

According to the German Federal Statistical Office, annual consumer inflation in Germany in December was 8.6%, down from 10% in November.

The authors of the IMK study attribute the decline from November to December primarily to a one-time state subsidy for natural gas and district heating.

But according to the study, this measure was not able to fundamentally narrow the gap between the highest and lowest household-specific inflation rates.

Over the course of 2022, inflation for low-income families was 8.8%, significantly higher than the general inflation rate of 7.9%.

The reason IMK gives for the heavier burden on poorer households is that they have to spend a larger percentage of their income on energy and food than wealthier ones.

However, due to the energy crisis in Germany, price hikes in these areas in particular have recently been above average.

According to a poverty report by the non-profit Paritatischer Gesamtverband association, the number of low-income people in Germany reached an all-time high in 2021. The at-risk-of-poverty rate in 2021 was 16.6%.

The organization counts 600,000 more poor people in Germany than before the coronavirus pandemic. In total, 13.8 million people in Germany are at risk of poverty.

In 2006, the rate was 14%. The situation is further exacerbated by the persistently high inflation rate.