Low incomes are still heavily impacted by inflation

People with income below 2,000 Euro net per month must still be above average Retail goods save. This is based on the current one Sankt Martins-Report 2024 from the Institute for Trade, Sales and Marketing at the Johannes Kepler University Linz.

While currently the Purchase reluctance of consumers in the middle and upper income segments is slowly decreasing, this is becoming entrenched in the lower income segment. While in September 2023 27 percent of consumers in households with a monthly net income of less than 2,000 euros bought fewer retail goods, a year later the figure increased to 30 percent even more. However, if you look at the current phase of flattening inflation, the value should decline.

“Die Aftermath The inflation crisis is still particularly noticeable for the lower income quartile (up to 2,000 euros in monthly net income),” says the report. In comparison, purchasing reluctance in middle and upper income classes fell from 26 percent in the previous year to 18 percent.

In addition, 59 percent of Austrians in the lower income quartile continue to do so in response to increased prices cheaper retail goods back. With a value of 62 percent in the previous year, this purchasing behavior has hardly decreased despite lower inflation – in contrast to the higher income categories.

Especially when it comes to retail spending Long-term needs such as electrical appliances or furniture, the lower incomes are making the red pencil: 54 percent save here, while in the middle and upper income segments it is only 35 percent. The results for the areas also show similar differences Vacation and leisure.

“Low-income households in particular are still suffering from the crisis,” is the summary. The analyzes would show that the inflation crisis is still hitting low-income households particularly hard, while consumer behavior is changing in higher income groups slowly relaxed.

The Sankt Martins Report 2024 is dedicated to: Special report on the occasion of the memorial day of Saint Martin of Tours on November 11th the consumption and shopping behavior of Austrians with comparatively low household incomes. It shows differences to households in the middle and upper income segments.