Inflation Eats Income and Increases Financial Worries

According to the latest survey "How are we today?" by Statistics Austria, 23 percent of Austrians reported having suffered income losses in the past twelve months. Those particularly affected are people with low incomes and the unemployed. For 38 percent of respondents, the financial situation has improved, while for 40 percent it remained unchanged.

Financial Situation of Low-Income Households Further Deteriorated

The results of the quarterly survey show: The number of people whose income situation has subjectively worsened has remained stable compared to the previous year. At the same time, the number of people with improved income decreased from 43 to 38 percent, while the proportion with an unchanged situation increased from 33 to 40 percent.

Vulnerable groups particularly perceive income declines: 45 percent of households affected by unemployment and 41 percent of respondents with low incomes stated that household income had decreased in the last 12 months. Single parents and households with three or more children are also among the particularly burdened groups.

Food, Energy, and Housing Costs as Main Burden

Vulnerable households struggle more often with ongoing expenses: 39 percent of households with low incomes and 33 percent of the unemployed reported having difficulty covering these. Overall, this affects 10 percent of respondents. The main cause of financial bottlenecks was reported to be increased food expenses (31.6 percent), followed by higher energy (9.3 percent) and housing costs (9.2 percent). Improvements in the financial situation were mainly achieved through higher wages or longer working hours (38 percent) as well as job changes (25 percent).

Social Minister Korinna Schumann (SPÖ) sees the burden, especially for vulnerable groups, as a mandate for politics: "When the costs for food, housing, and energy become the greatest burden for many, then this is a clear mandate for politics to counteract," said Schumann in a press statement. The federal government is therefore focusing on measures for more transparency in food and against shrinkflation, the social tariff for electricity, the rent price stop, and the housing shield.

Opposition Criticism of Government

Green Party social spokesperson Markus Koza, on the other hand, warned in a press release about the deterioration of the situation for low-income people in Austria due to the government measures that have been decided: "If family benefits are no longer adjusted for inflation, the climate bonus is completely abolished, or additional earning opportunities for the unemployed are effectively eliminated, these are all measures that affect precisely those groups who already barely know how to finance their lives."

FPÖ social spokesperson Dagmar Belakowitsch criticized the Minister of Social Affairs in a press release and called for "a real stop to inflation." It is necessary "to finally, among other things, reduce VAT on basic foodstuffs and lower the numerous taxes and levies on energy to noticeably relieve the population. These measures alone would already dampen inflation and stimulate the economy."

Political Interest and Participation Unequally Distributed

The focus of the 15th survey was on political participation. 21 percent expressed strong and nearly half expressed some interest in politics. Interest is particularly pronounced among people with higher education, while it is significantly lower among low-income groups. Political activities are mostly limited to participation in elections. Other forms such as party engagement or demonstrations remain rare.

At the same time, many feel politically unheard: 80 percent of respondents stated that their voice finds little (47 percent) or no hearing (33 percent). This feeling is particularly prevalent among those with income losses and the unemployed.

In the "How We Are Doing Today" study, perceived income changes are surveyed. Between 3,000 and 3,880 people aged 18 to 74 are selected and surveyed per survey using a representative random sample. In the current, 15th survey round, 3,847 people were surveyed.

(APA/Red)

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