The business community should absorb part of the price increases itself, in order to mitigate the loss of purchasing power of the Dutch. This is what chairman Tuur Elzinga of the FNV trade union suggests in a response to a leaked purchasing power estimate from the Central Planning Bureau (CPB). Especially people with the lowest incomes should be spared, says Elzinga.
“Inflation is unprecedentedly high and affects the smallest wallets in particular. Low incomes need extra support, because the current 200 euros for energy costs is completely insufficient,” explains Elzinga, referring to a government support measure for minimum wages with high energy bills.
The CPB assumes that purchasing power will decline sharply and has drawn up three scenarios. The middle one assumes a decrease of 2.7 percent, The Hague sources reported on the eve of a new estimate.
Elzinga wants the business community to be reluctant to directly pass on high prices for, for example, fuel, grain or other raw materials for products for basic necessities. All these things have become considerably more expensive due to the Russian invasion of Ukraine. Russia is rich in raw materials such as oil, natural gas and metals and Ukraine is known as an important grain producer.
“There are still plenty of profits to be made, so the business community can also bear part of the burden. If companies do not do this, the FNV can imagine a targeted price measure imposed by the government in this current, extraordinary situation,” said Elzinga.
FNV also points to companies to prevent loss of purchasing power
Source link FNV also points to companies to prevent loss of purchasing power