Incomes, Consumption, and Prices

The purpose of describing incomes, consumption, and prices is to provide an overview of levels and trends in incomes, consumption, and prices of goods and services. There is a connection between these factors and they are therefore described as a whole.

 

After taxes have been paid, incomes offer the possibility of consumption; consumers primarily get their incomes via employment on the labour market.

 

The tax system entails a redistribution of incomes so that consumption opportunities among different income groups are evened out.

 

Finally, the price level and the development in this - inflation - play an important role for the purchasing power of incomes.