A survey by the STEM/MARK agency for the ČSOB financial group showed that more than four fifths (83 percent) of Czech households are very concerned about current inflation. In addition to rising housing costs, which was mentioned by almost two-thirds of people, Czechs are also concerned about the devaluation of savings (59 percent) or greater spending on consumer goods and services (58 percent).
In one in four households, they have to deal with increased expenses by reaching into savings or even borrowing money, with relatives or friends most often asking for financial help.
Another quarter, however, do not have a readily available reserve at their disposal, 15 percent of households are not at all able to put something aside every month.
In the event that they would run into financial problems in the future, people would most often resort to deposits in savings accounts (45 percent), in a current account (39 percent) or would pull out the so-called iron reserve of cash from a drawer (31 percent). More than a tenth of those interviewed would solve their difficult situation through a loan.
How Czechs deal with the effects of inflation on savings
Depreciation of financial reserves is one of the negative effects of inflation. The Czechs are understandably annoyed by this and try to protect their savings at least a little. Women are more conservative in this regard and to fight inflation they mainly choose savings accounts or even current accounts, where they lose significantly.
According to the survey, men who are less worried about inflation tend to invest in riskier instruments such as stocks, bonds or investment funds.
In general, households see owning real estate (53 percent), gold (33 percent) and savings accounts (30 percent) as the best protection against inflation.
Fear of inflation is growing among Czechs
Finance
