Inflation hits the district hard: low-income people are particularly affected

Created: 08/18/2022, 1:00 p.m

For a long time now, there are no longer ten euros left over from every ten euro: high inflation is particularly hard on people with small wallets.

The NGG union calls for targeted relief for low-income earners.

© ngg

Due to rapidly rising prices, households in the district of Munich will lose around 169 million euros in purchasing power this year.

For groceries alone, consumers have to reckon with additional expenditure of 74.8 million euros.

This is reported by the Food, Enjoyment and Restaurants Union (NGG).

District

- According to the press release, the NGG refers to a regional purchasing power analysis by the Pestel Institute in Hanover.

According to this, people with lower incomes are particularly affected: in the 60,500 households in which single parents and single people with a monthly net income of less than 2,000 euros live in the district of Munich, the projected losses in purchasing power – from heating to shopping in the supermarket – would increase by the end of the year amount to 40.9 million euros.

Alarming sign

NGG regional manager Tim Lünnemann speaks of "alarming numbers".

The price increases threaten social upheaval if politicians do not counteract this with targeted relief.

"From the waiter to the bakery saleswoman - employees who are not top earners currently have to turn over every cent twice.

If you have to see how you can get by until the end of the month anyway, the current additional expenses are having an enormous impact,” says Lünnemann.

Food prices as a driver of inflation

According to the Pestel Institute, the increased food prices are a particular driver of inflation: in the first half of the year, the average household in the district of Munich has to bear an additional burden of 39 euros a month for food alone.

The additional expenses for energy amount to 37 euros per month, and mobility has increased by 12 euros.

Energy price cap required

According to the observation of the NGG, the price jumps in the supermarket "affect the people who work with food themselves - whether in the restaurant, in the brewery or in the bakery".

The union had succeeded this year in achieving wage increases through collective bargaining agreements, for example in the hospitality industry.

However, inflation threatens to wipe them out.

“What we need now is special help for low-income workers.

But also for pensioners, students and job seekers.

The government's previous relief packages are not sufficient," says Lünnemann.

The NGG managing director is in favor of an "energy price cap" to protect private households from skyrocketing costs for gas and electricity.

Lünnemann: "It would also be logical  

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