Purchasing power drops 1 percent

The purchasing power of the Dutch population decreased by 1.1 percent in 2013, Statistics Netherlands announced today.

The purchasing power decreased for the fourth consecutive year, in line with the economic crisis and rising unemployment in these years. Most population groups saw their purchasing power decrease in 2013, due to the continued economic slump.

How purchasing power develops depends on things such as collective wage inflation or changes in tax rules. That is the so called statistic purchasing power. But peoples income, and therefore their purchasing power, can change quickly. For example, losing or finding a job, working overtime or getting a performance bonus. This counts in the so called dynamic purchasing power.

These personal changes generally have a positive effect on purchasing power development. In economically difficult time, as in the years 2009-2013, that effect is much smaller.