Per capita real household income in OECD countries was affected by inflation during the first quarter of 2022, with Spain as one of the club’s hardest-hit countries, with a contraction of 4.1%. As reported by the Paris-based multilateral organization, “the decline in per capita real income in the first quarter of (quarterly) 2022 is explained, in part, by prices went upwhich has substantially reduced household income”.
The group of countries known as the Club of Rich Countries has recorded a decrease of 1.1% in this indicator – analyzed over the period that corresponds to Beginning of war in Ukraine-, despite the fact that GDP per capita in the group increased by 0.2% during the first quarter of 2022. The OECD highlighted Austria (-5.5%) and Spain (-4.1%) as European countries leading the erosion of family income. , Among the G7 economies, the club highlights the decline in France (-1.9%) and Germany (-1.7%).
the other side of the coin Among the richest countries, Canada was placed, where per capita family income increased 1.5% in the first quarter, thanks to a 3.8% increase in salaries and the company’s social contribution in nominal terms. However, compared to the last quarter of 2019, before the covid lockdown, both household income and GDP per capita have increased. 2.9% and 1.6% respectively in the first quarter of this year.
Consumers expect higher inflation
On the other hand, consumers in the euro area expect higher inflation and economic contraction, according to a survey conducted by the European Central Bank (ECB) in Belgium, Germany, Spain, France, Italy and the Netherlands. The ECB reported this Thursday that consumers have predicted inflation will be 5% within twelve months and 2.8% within three years.
The monetary unit aims for an inflation rate of 2% over the medium term. Euro area consumers expect contraction in Euro area growth of 1.3% and unemployment at 11.5%. The ECB conducts this survey on consumer expectations online every month, through which it collects information about consumer perceptions and expectations in the euro area and on their economic and financial dealings.
The survey results are based on responses from 14,000 consumers over the age of 18, from six euro area countries that represent 85% of gross domestic product (GDP) and 83.8% of the population. The ECB began publishing the results of this survey today and will do so monthly from now on.