According to the latest 365.bank survey, up to 63 percent of people had to deny themselves things that were previously standard for them. About 60 percent of Slovaks are worse off with savings. This was mainly due to rising prices (inflation reached a record 15.4% in February). Currently, the situation has slightly stabilized (inflation is currently 7.8%), but a significant improvement may not come until a few months from now.
“People could not afford as much during this year as in previous years. For a purchase that cost us 100 euros at the beginning of the year, we had to pay an average of 12 euros more in October. The prices were constantly rising, and therefore people had to tighten their belts and many reached for their saved money. We estimate that the pace of price growth will slow down next year and, on the contrary, the level of real wages should grow. That means we could afford to buy more. But we won’t get to the level before the pandemic,” says Tomáš Boháček, 365.bank analyst.
As Patrícia Kollár from the research agency 2muse adds, the paradox is that the greatest acceptance of the impact of rising prices is among older residents of retirement age. It has the worst impact on economically active people under the age of 34. “It seems that it is most difficult for them to limit consumption and keep monthly expenses under control. In the case of people of retirement age, government measures in the form of several state allowances could also play an important role.” says Patrícia Kollár.
