Especially low-income households, in Finland and elsewhere, spend a large share of their income on basic consumption such as food, electricity and heating, which makes them particularly vulnerable to increases in the living costs. Lowincome households, furthermore, are able to save less and are more liquidityconstrained than high-income households.
They have less room to buffer sharp increases in their cost of living through savings or affordable loans. Secondly, it's worth highlighting that Finnish households have more debt than ever before, in the face of fast-rising interest rates. For decades Finnish households have constantly accumulated debt in relation to their income.