“The inflation crisis has hit low-paid workers the hardest” – economist at the Bank of Estonia

2023-12-01 09:14:06
Rasmus Kattai. Photo: TIIT BLAAT

According to Bank of Estonia economist Rasmus Kattai, due to the inflation crisis of recent years, the largest drop in purchasing power has occurred among people who receive the lowest salaries, writes ERR.

“The rising cost of living has had the biggest impact on people’s incomes,” Kattai said on ETV’s “Terevisioon” on Friday. “Life is a third more expensive than three years ago, this is a new level of prices that people will have to cope with.”

Compared to April 2021, the purchasing power of the average salary is now 94%, the minimum was recorded in August 2022 – 87% of the April 2021 level.

He added that the current crisis differs from previous ones in the absence of mass layoffs, and the number of people working is now one of the highest on record.

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