Biggest drop in Dutch purchasing power since 1985

Biggest drop in Dutch purchasing power since 1985

Dutch households may have suffered their biggest drop in purchasing power since 1985, according to Statistics Netherlands.

The purchasing power of the Dutch population dropped by 0.5 percent in 2010, the most substantial decline since 1985 when Statistics Netherlands started surveying changes in the perceived purchasing power on an annual basis. The only other year to show a decline was 2005, when purchasing power dropped by 0.3 percent.

With 1.4 percent and 0.8 percent respectively, self-employed and pensioners in particular faced loss of purchasing power in 2010.

Recipients of social security and disability benefits and employees who did not lose their jobs kept their purchasing power. Employees who lost their jobs and had to live on social security lost over 17 percent of their purchasing power.

The lowest income bracket lost only 0.1 percent of their purchasing power in 2010. The loss of purchasing power could run up to – 0.8 percent for the highest income earners. Self-employed and pensioners in particular lost purchasing power. Self-employed are overrepresented in the higher-income groups. Pensioners suffered as their supplementary pensions were barely indexed in 2010. The higher the supplementary income, the more this is felt.

Source: CBS

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