The good progress of the economy is felt in the pockets of Barcelona residents. In the first quarter of this year, the disposable income of Barcelona households shows a very significant nominal increase, of 10.9%, compared to the same period in 2022, according to a report from the Municipal Data Office Town hall.
Household disposable income includes wage earners, mixed incomes, social benefits, taxes and social contributions.
The study points to a very similar trend with regard to primary income, which excludes social benefits, taxes and contributions, that is to say, without the corrective effect of the public sector. The existing divergence between the two indicators that was registered during 2022 is broken.
The remuneration of salaried workers and social benefits in the first quarter of 2023 show similar year-on-year rates and in both cases positive, above 6%. Meanwhile, mixed rents have a very high growth rate of 21.2%, which the authors of the report attribute in part to the evolution of property rents.
The Municipal Data Office has also studied the evolution of the purchasing power of Barcelona households. He concludes that, after a long period with years of very moderate inflation, or even with negative rates (in 2020), the increase in prices is a prominent feature of the current situation, although inflation has begun to step down.
If the value of the disposable income of households before the pandemic is considered as a reference, it can be seen that from the third quarter of 2021 and throughout 2022 the aforementioned level has been reached and exceeded of income in nominal terms. In the first quarter of 2023, this value is 12% higher than the starting point. This positive result is not detected, however, if the increase in prices is considered. In any case, and taking inflation into account, it can be said that the level of purchasing power before the pandemic has practically been reached.
