The good progress of the economy is noticeable in the pocket of the people of Barcelona. During the first quarter of this year, the disposable income of households in Barcelona shows a very significant nominal increase, of 10.9%, compared to the same period in 2022, according to the report published by the Municipal Data Office of the City Council from Barcelona.
Household disposable income includes wages, mixed income, social benefits, taxes and social contributions.
The same study indicates a very similar trend with regard to primary income, which excludes social benefits, taxes and contributions, that is, income without the corrective effect of the public sector. Thus, the existing divergence between both indicators that was registered during 2022 is broken.
The remuneration of salaried workers and social benefits presented similar interannual rates in the first quarter of 2023 and in both cases positive, above 6%. Meanwhile, mixed incomes present a very high growth rate of 21.2%, which the authors of the report attribute in part to the evolution of private income
The Barcelona City Council Municipal Data Office has also studied the evolution of the purchasing power of Barcelona households. It concludes that, after a long stage 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 decline.
If the value of household disposable income from before the pandemic is considered as a reference, it can be seen that from the third quarter of 2021 and throughout 2022 this level of income has been reached and exceeded in nominal terms. Specifically, 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 purchasing power level of before the pandemic has practically been reached.
