Many households face a tough autumn due to rising prices | NOW

Many households face a tough autumn due to rising prices | NOW
Many households face a tough autumn due to rising prices | NOW

A large part of Dutch households will have to deal with a heavy autumn as energy and food prices continue to rise. It is not just about the lower incomes. Middle and higher incomes are also under considerable pressure, warns the National Institute for Budget Information (Nibud).

More about the cost crisis

“If people have to pay 300 to 400 euros more per month for their energy bills, the budget will come under pressure. The bills can be huge. And households will have to deal with it across the board, it does not only affect the lower incomes” a spokesperson said.

Nibud therefore advises people to carefully check whether they may be entitled to a surcharge. “It is also useful to re-examine all income and expenses.”

The purchasing power of many consumers is under considerable pressure as inflation reached a record level of 12 percent in August. Wages rose by about 4 percent in the same month. This means that they are lagging far behind the price increases, according to preliminary figures from employers’ association AWVN.

Moreover, we are gradually engaged in an energy war with Russia. As the West continues to supply weapons to Ukraine, Russian President Vladimir Putin is turning off the gas tap. And that means we pay more at the pump and in some cases see our energy bill double.

First signs were already there last year

In addition, inflation has risen sharply since August last year. It was then also driven by higher energy prices, while the war in Ukraine had not yet started. So the first signs were already there.

Add to this the problems in the supply chains due to the lockdowns in China in particular and the aftermath of all corona measures in Europe. A cost crisis can then no longer be averted.

The cabinet recently announced that measures will only be taken from next year to ease the pain of sky-high inflation. A package of 14 billion euros is being earmarked for this.

‘We don’t solve the problems that way’

“Much too late,” said Reinier Castelein, chairman of the trade union De Unie. “In addition, the purchasing power repair is now being taken away from the wealthy. It is just a leveling party, which reduces income differences. But that does not solve the problems. People with a decent income also live in rented houses where they do not have the energy supply in their own hands. .”

Trade unions and employers are also failing. Instead of concluding a social agreement to improve the purchasing power of employees, it is mainly a matter of sticking to one’s own plans and views.

The FNV has announced that the day before Budget Day it will come up with a hefty wage demand to compensate for the loss of purchasing power of employees. The union previously indicated that it would go for full price compensation. Employers don’t see that. And so the polder does not make a dent in a pack of butter in the cost crisis.

The article is in Dutch

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