The majority of Czech households are deeply worried about the country’s current inflation, with rising housing costs, higher food and consumer goods expenses, and substantial depreciation of savings causing significant distress to Czechs. This was revealed in a recent survey conducted by the STEM/MARK agency for the financial group CSOB. The survey indicated that over 83% of Czech households are concerned about the inflation that has been negatively impacting their budgets for some time.

According to the survey, nearly two-thirds of the respondents mentioned soaring housing costs as their primary concern. The survey also found that 59% are worried about savings depreciation, and 58% are struggling with increased consumer goods and services expenses. To cope with higher expenditures, a quarter of households are dipping into their savings or borrowing money from relatives or friends.

However, the survey found that a quarter of households do not have any readily available reserves, and 15% cannot save anything every month. If faced with financial difficulties in the future, 45% of people would turn to their savings accounts, 39% to their current accounts, and 31% would withdraw cash from their emergency stash. More than 10% of respondents would consider taking out a loan to tackle their difficult situation.

The survey also revealed that women tend to be more conservative when protecting their savings, preferring savings accounts or even current accounts, but suffering significant losses. In contrast, men, less concerned about inflation, lean towards riskier tools such as stocks, bonds, or investment funds.

The survey also found that homeownership (53%), gold (33%), and savings accounts (30%) are generally considered the best protection against inflation.

The Czech National Bank has been fighting inflation by increasing interest rates, which have risen from 0.25% to 1.25% since August 2021. However, the recent survey shows that the public is still very concerned about the impact of inflation on their budgets. The government has announced plans to help households cope with the increasing costs of living, but these measures are yet to be fully implemented.

Article by Prague Forum