Radio | News week in plain Finnish | Sunday 17 November 2024

Purchasing power of Finns

This time, the topic of the news week is the purchasing power of Finns, i.e. what a Finn’s salary is enough for. Purchasing power has been bad for a long time, but this year it has started to improve. Now we will tell you more about it.

Purchasing power

For example, food has become more expensive in recent years. Photo: Yle Image tape

The news this week has said that the purchasing power of Finns is bad.

Purchasing power tells how much goods and services people are able to buy. The purchasing power of Finns is poor because prices have risen more than wages in recent years.

Last year, Finns’ purchasing power was the worst in 15 years. The salary has therefore been able to buy less food and goods than in a long time.

This year, the situation has started to slowly improve. Prices are no longer rising as fast as before. Interest rates have also fallen, and therefore, for example, a mortgage takes less money than before.

However, Finns are still not able to buy as much with their salary as, say, 3 years ago. Purchasing power is still poor.

Wages

SAK chairman Jarkko Eloranta says that employees’ purchasing power must be improved. Photo: Petteri Bülow / Yle

Workers’ unions are concerned about workers’ purchasing power. That’s why they want salary increases.

The central organization of trade unions SAK said this week that it demands a total of 10 percent wage increases. SAK believes that a wage increase is necessary because prices have risen and the purchasing power of employees has decreased.

The employers’ organization EK says that a 10 percent salary increase is too big. In the opinion of employers, too large salary increases can give momentum to the rise in prices. And if prices rise, purchasing power deteriorates.

Economic growth

Better times are predicted for Finnish companies. Photo: Petri Aaltonen / Yle

There has also been good news about the Finnish economy this week. It is predicted that the Finnish economy will start to grow next year.

For example, the European Union Commission predicts that the Finnish economy will grow by 1.5 percent next year. Even this year, Finland’s economy will shrink.

Economic growth also improves the financial situation of ordinary Finns.

Repeat

The topic of the news week was purchasing power. Let’s summarize the most important things.

The purchasing power of Finns has been poor in recent years.

Finns have been able to buy fewer goods and services than before because prices have risen faster than wages.

Now the situation is starting to look better, because the rise in prices has slowed down and there are signs of growth in the economy.

This was Uutisviikko in plain Finnish, see you again. Goodbye!