The real consumption options of the population are termed
the purchasing power or the real income. The consumption options are closely
linked to the relationship between the income level and the price level.
An increase in income increases consumption options while
price increases limit the these options.
The real income increases if the growth in the income is
greater than the growth in the prices. In that case the purchasing power is
said to be strengthened. Similarly, the purchasing power is weakened if prices
increase more than do the incomes.
To get a clearer picture of the developments in the purchasing power, the percentage changes in real income from year to year are calculated. These calculations are shown in Overview 1.
Overview 1
Development in Real Income
|
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
2008 |
|
|
Income price Index 1) |
100 |
100,8 |
104,2 |
105,7 |
110 |
113,9 |
118,5 |
|
Consumer price index |
100 |
103,2 |
104,3 |
106,7 |
109,1 |
114,9 |
120,1 |
|
Real income index |
100 |
97,7 |
99,9 |
99,1 |
100,9 |
99,1 |
98,7 |
|
Annual change (per cent) |
-2,3 |
2,2 |
-0,8 |
1,8 |
-1,8 |
-0,4 |
|
Note: 1) The calculation of the income index is based on average gross incomes.
Source: Statistics Greenland
The table shows the consumption options for the population as a whole. Differences in income, prices, and consumption patterns mean that there can be large individual differences, depending on e.g. profession, age, and place of residence.