As grow slows and inflation continues to bite, real household income is declining, the Organisation for Economic Co-operation and Development (OECD) reports.
In the second quarter, per capita real household income fell by 0.5% in the OECD area, the Paris-based group reported.
“This is the third quarter in a row that real household income per capita has declined in the OECD, as rising consumer prices continue to undermine growth in household income when measured in real terms,” the group said in a report.
Real household income fell in most OECD countries in the second quarter, and in all of the G7 economies except for Germany.
For Canada, real household income per capita was down by 1.1% in Q2, the OECD said. Incomes were down by 1.2% in France, 1.1% in the U.K., and 0.4% in the U.S.
The second-quarter decline was the fifth consecutive quarter of falling real income for households in the U.S., and the fourth straight quarter for the U.K.
“The declines over this longer period reflect both the reduction in pandemic-related government assistance and rising consumer prices faced by households,” the OECD said.