Prosperity through wages or capital?

Frankfurt Inflation is persistent in Germany. According to the Federal Statistical Office, consumer prices in the fourth quarter of 2022 were 8.6 percent higher than in the same quarter of the previous year, with energy and food in particular becoming more expensive as a result of the war in Ukraine.

For many people, the higher prices also mean a loss of prosperity – and fuel corresponding fears. In a survey conducted by the opinion research institute Ipsos last month, respondents from Germany named inflation as their biggest concern, ahead of social inequality and climate change.

However, the high rate of inflation does not affect everyone equally. The extent of the loss of prosperity depends on how much wages or wealth have increased over the same period. Basically, the question is who is better able to cope with inflation: employees with their salaries or investors with their investments? The Handelsblatt has analyzed new data and figures from the past twelve years to answer this question.