Inflation hitting real incomes, OECD reports

By James Langton | August 4, 2022 | Last updated on August 4, 2022
1 min read
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High inflation is reducing real household income, according to new data from the Organization for Economic Cooperation and Development (OECD).

In the first quarter, real income dropped by 1.1% across the OECD, as rising consumer prices cut into households’ real incomes, the Paris-based group reported.

Among G7 countries, inflation hit household purchasing power in France and Germany hardest, leading to real income drops of 1.9% and 1.7%, respectively.

However, Canada defied the trend, the OECD said, recording a 1.5% increase in real income — the highest growth in the G7. (Italy was the only other country in positive territory, with incomes up 0.3%.)

The rise in incomes for Canada was primarily driven by higher wages and other compensation, which offset the effects of inflation, the OECD said.

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James Langton

James is a senior reporter for and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.