Household incomes drop in Czechia as inflation stings single parents most

Czech household incomes rose 7.7 percent to last year, but when adjusted for inflation, real incomes declined by 6.5 percent.


Written by ČTK Published on 29.02.2024 13:56:00 (updated on 29.02.2024) Reading time: 1 minute

Real income, the amount of money an individual makes after adjusting for inflation, took a hit this year in Czechia amid rising economic challenges. Single-parent families were particularly vulnerable, with close to 30 percent reporting that they couldn’t afford basic household expenses ranging from furniture to groceries.

Household incomes in the Czech Republic experienced 7.7 percent growth last year, averaging CZK 259,900 per person annually. However, when adjusted for inflation, real incomes fell by 6.5 percent, as reported in data released by the Czech Statistical Office (CZSO) Thursday.

The annual survey of 11,500 households reflects their living conditions from the previous year and last spring. The survey reveals that the percentage of individuals below the poverty line earning less than CZK 16,774 per month for a single person has decreased slightly from 10.2 percent to 9.8 percent.

Income poverty, which affects over 1 million individuals, is defined as having a monthly income of less than 60 percent of the median net monthly income.

Despite a rise in the percentage of people facing challenges affording essential items, the proportion below the income poverty line decreased slightly. Although income poverty diminished by over 40,000 individuals from the previous year, material deprivation affected around 730,000 people. This is an increase of more than 210,000 from 2022.

The decline in those below the income poverty line is attributed to a one-time child allowance of CZK 5,000, benefiting households with an annual gross income below one million crowns and accelerating income growth for poorer families compared to middle-income households.

Czech households saw an average net income of CZK 259,900 last year, up from CZK 241,200. Elderly individuals experienced a 14-percent rise in incomes, from CZK 222,100 to 252,900, attributed to triple-indexed pensions.

Single-parent households faced increased vulnerability to material deprivation, with nearly 27 percent struggling to afford essential items, up from 17 percent the previous year. These items included new furniture, a week’s holiday, an unexpected expense of CZK 14,100, regular access to meat, fish, or poultry, and sufficient heating.

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