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[BUSINESS] · Germany · 15 sources

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Ifo Institute: Iran-Iraq War impacts low-income German households

A study by the Ifo Institute reveals that the economic consequences of the Iran-Iraq War are disproportionately affecting low-income households and retirees in Germany. The research indicates that the price shock caused by the conflict has led to an estimated 16.8 billion euro increase in consumer spending for German households.

The bottom ten percent of households are losing up to 2.87 percent of their disposable income, compared to just 0.65 percent for the highest earners. On average, all households face a loss of approximately 1.15 percent of their disposable income.

Retirees are also significantly impacted due to a lack of wage income to act as a buffer and a high proportion of their budget dedicated to heating and energy costs. Specifically, retiree couples are losing 1.53 percent of their income, while single seniors are losing 1.45 percent. The study notes that rising prices for heating oil and fuel, driven by the conflict, are also increasing transport costs and affecting other goods.

Entities

Andreas Peichl · Germany · Ifo Institute · Tiphaine Wibault

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