Inflation thus more than offset the rise in nominal earnings also in Q3 2022. Employees in Germany thus suffered a loss in real earnings for the fourth quarter in a row, following year-on-year (YoY) decreases in real earnings of 4.4 per cent in Q2 2022, 1.8 per cent in Q1 2022, and 1.4 per cent in the Q4 2021, according to a media release by Destatis.

Also, this has been the largest and longest decrease in real earnings since the beginning of the time series in 2008. The index of nominal earnings shows the development of gross monthly earnings of employees, including extra payments, while the index of real earnings provides information on the price adjusted development of earnings.

The inflation rate in Germany is expected to be +10.0 per cent in November 2022. The inflation rate is measured as the change in the consumer price index (CPI) compared with the same month a year earlier. In October 2022, the inflation rate had been +10.4 per cent. Based on the results available so far, Destatis also reports that consumer prices are expected to decline by 0.5 per cent compared with October 2022.

Fibre2Fashion News Desk (NB)