Inflation is a significant concern for many households in the Czech Republic. Ipsos conducted a survey on behalf of Generali Investments CEE, which found that nearly half of Czechs are worried about their finances due to the rising inflation rates. In just six months, the number of people concerned about inflation has increased by almost a tenth. Additionally, seven out of ten respondents believe that they will be worse off this year than in 2022 because of the increase in inflation.

Last year was not an easy year for Czech households, as three-fifths of respondents reported struggling to cope with rising energy, food, and other prices that were eating into their finances. Only one in eleven people reported having no problems with their finances. The current survey results suggest that the situation has not improved in the past year.

While the rising energy prices were a significant concern for Czechs in August 2022, the number of people worried about their finances due to rising energy prices has decreased since then. Two-fifths of respondents in October 2022 were concerned, while only three in ten people expressed concern in the most recent survey wave in February 2023. Radomír Jáč, chief economist at Generali Investments CEE, suggests that the falling gas price on world markets and the government’s price cap are leading to a decline in public concern.

The COVID pandemic is no longer a significant issue for Czechs in terms of their finances. The number of respondents concerned about the pandemic’s impact on their wallets has decreased significantly from 4.4 percent at the beginning of last year to only 1 percent in the latest survey.

The survey also showed that Czechs are looking for ways to save money, particularly by reducing their energy and water consumption. More than three-fifths of respondents are saving on food expenses. There has also been an increase in people canceling or reducing subscriptions to streaming services or magazines. Cutting back on restaurant visits is another popular way for Czechs to save money.

In conclusion, the rising inflation rates have become a significant concern for many households in the Czech Republic. The survey results suggest that Czechs are actively looking for ways to reduce expenses, particularly in areas like energy, water, and food. While the rising energy prices were a significant concern in the past, the situation has started to improve in recent months. However, the majority of respondents still expect to be worse off this year than in 2022 due to the increase in inflation.

Article by Prague Forum