The war in Ukraine has significantly increased prices, particularly for energy, adding to inflationary pressures at a time when the cost of living was already rising rapidly around the world.
Switzerland has avoided the general trend of wage rises falling behind inflation. In the United States, the average decline in real wages for the entire population – across all sectors and income levels – was just over 2% year-on-year in the third quarter of 2022.
In Europe, Germany and Spain saw even more pronounced declines in purchasing power, with real incomes falling by just over 4%and 5%, respectively, nationwide.
Several factors explain the differences between countries, such as differences in exposure to inflation, but also in social protection measures.
