Real wages continue to rise in Germany in spite of higher inflation

Source: Xinhua| 2018-09-20 23:24:36|Editor: Mu Xuequan
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BERLIN, Sept. 20 (Xinhua) -- Real wages in Germany have continued to rise during the second quarter (Q2) of 2018 in spite of an uptick in inflation, official figures published on Thursday by the country's Federal Statistical Office showed.

According to the Wiesbaden-based government agency, German wages increased by 2.5 percent on average between April and June. Although consumer price inflation rose to 2.0 percent during the same period, the highest level measured by the Federal Statistical Office since 2012, workers in Germany consequently still experienced a real income gain of 0.5 percent.

The highest nominal wage increases in Q2 were recording in energy provision (4.5 percent), followed by the manufacturing industry (4.1 percent), real estate (3.7 percent), as well as the freelance-, scientific and technical service sector (3.6 percent). By contrast, wage growth was significantly lower in the public administration, defense and social insurance (0.6 percent) and the arts, entertainment and recreation (0.9 percent) sectors.

Broken down by regions, nominal wages in East Germany (3.6 percent) rose well ahead of those in West Germany (2.4 percent) between April and June.

The Federal Statistical Office emphasized, however, that both halves of the country "differ significantly with regards to the absolute income level." Average gross wages including special payments in East Germany are currently measured by the government statisticians at 3,365 euros per month, compared to 4,541 euros per month in West Germany.

Regardless of the regional and sectoral discrepancies for real wages, and hence also purchasing power in Q2 identified in the official study, the findings underscored growing evidence of a gradual shift from export- to consumption driven growth in Germany.