Up to a net annual income of around 17,400 euros, inflation is fully compensated by emergency measures totaling 4.7 billion euros, calculates the liberal business think tank Agenda Austria.
As difficult as it is for more and more people to pay for their groceries and energy bills, the government’s anti-inflationary measures should help the low-income earners in particular. “For the 15 percent with the lowest incomes, the deduction is currently greater than the increase in consumer spending due to inflation,” calculates Hanno Lorenz, economist at Agenda Austria. In concrete terms, people up to a net annual income of a total of 17,400 euros receive full inflation compensation. Inflation costs more than 1000 euros more, and the relief is even slightly higher (see chart below).
In the bottom 20 percent (net 19,600 euros), the extra charges and compensatory measures are still virtually the same. For average incomes (50 percent has up to 30,100 euros) much more than half of the inflation is absorbed. Only high earners get a small part replaced.
1000 euros in support for 90 percent of households
The disaggregated (“equivalised”) household income per person is calculated. In total, 90 percent of households will probably receive more than 1,000 euros in support.
In total, the three anti-inflation packages have already amounted to 4.7 billion euros, for example for extra family benefits, energy cost vouchers, climate bonuses, etc. The fact that these are distributed over a few months and sometimes only in the wallet next year makes the support subjective less noticeable.
“A lot of help hasn’t even reached the citizens yet,” says Lorenz. Price ceilings for electricity and other additional watering measures are therefore not necessary, the state should focus on the needy.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
