A large portion of Dutch households will have to deal with a bumper autumn as energy and food prices continue to rise. It’s not just about low incomes. Middle and high incomes are also under great pressure, warns the National Institute for Budget Information (NIBID).
More about the cost crisis
“If people have to pay an extra 300-400 euros per month for their energy bills, the budget will come under pressure. The bills can be huge. And families will have to deal with it in general, it not only affects the lower income.”
So Nypod advises people to check carefully if they are entitled to an additional fee. It is also useful to re-examine all income and expenses.
The purchasing power of many consumers is under great pressure as inflation reached a record high of 12% in August. Wages rose about 4 percent in the same month. That means they are well behind the price hike, according to preliminary figures from the Employers Association AWVN.
Moreover, we are gradually engaged in an energy war with Russia. As the West continues to supply Ukraine with weapons, Russian President Vladimir Putin is turning off the gas tap. This means we pay more at the pump and in some cases see our energy bill double.
The first signs were already there last year
In addition, inflation has risen sharply since August last year. Then it was also driven by high energy prices, while the war in Ukraine had not yet begun. So the first signs were already there.
Add to this the problems in supply chains due to the closures in China in particular and the repercussions of all the Corona measures in Europe. Hence the cost crisis can no longer be avoided.
The Cabinet recently announced that measures will only be taken from next year to ease the pain of sky-high inflation. A package worth 14 billion euros is allocated for this.
“We don’t solve problems this way.”
“It’s too late,” said Rainier Castelen, president of the De Unie trade union. “In addition, purchasing power reform is now being taken away from the wealthy. It is just a leveling party, which reduces income differentials. But this does not solve the problems. People with decent incomes also live in rented houses where they do. They have no power supply with their hands.”
Trade unions and employers fail, too. Instead of concluding a social agreement to improve the purchasing power of employees, it is primarily a matter of sticking to one’s plans and views.
FNV announced that the day before Budget Day, it would be putting up a huge demand for wages to make up for the loss of employee purchasing power. The union has previously indicated that it will go for full price compensation. Employers do not see it. Thus, Boulder does not affect the butter tray in the cost crunch.
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