Every third Pole is afraid of the deterioration of his financial situation

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Rising prices are affecting the wallets of Poles, who are more and more carefully managing their home budgets. This affects their daily shopping choices and consumer behaviour. According to the Bank Millennium survey, almost every third respondent (29%) is afraid of financial problems due to the increase in prices. Nearly half of the survey participants (49%) choose cheaper products, while four out of ten respondents have recently decided to give up pleasures and expenses that are not necessary for life (e.g. those related to entertainment, eating out or additional clothes). Every fifth respondent postponed more serious expenses, such as the purchase of a car or electronics / household appliances. Every tenth, feeling the effects of inflation, is no longer able to save part of the money earned. Only 15% of respondents declare that they still maintain the same standard of living as before.

Nearly three-quarters of respondents (72%) assess their financial situation as not very comfortable. Although 43% of households have enough from paycheck to paycheck, any major purchase requires them to save up for some time. Almost a quarter of respondents (24%) declare that they live modestly and manage money very sparingly. Only one in four respondents (25%) believe that they live well, and they have enough money for all their needs without having to save too much.

- The results of the survey confirm that inflation has a negative impact on household budgets and forces consumers to change their shopping habits (choosing cheaper products, giving up shopping for goods and services that are not necessary). A consequence of high inflation, accompanied by an increase in interest rates, will be a clear slowdown in private consumption and, consequently, economic growth. The results of the survey also confirm that inflation affects households of pensioners, people with primary or secondary education the most. It is in these groups that the largest percentage of respondents believe that their life is a frugal one and that you have to manage your money very sparingly on a daily basis. These are pensioners who to the greatest extent have to give up their pleasures and everyday expenses that are not necessary. High inflation therefore leads to a deepening of income inequality. That is why it is so important to reduce inflation and it should undoubtedly be a priority of economic policy - said Grzegorz Maliszewski, chief economist at Bank Millennium.

The study "Saving in the face of high inflation" shows that the deterioration of the financial situation of some residents of Poland is primarily the result of an increase in the prices of everyday items. As many as 66% of respondents indicate that food, household chemicals and other such products are one of the three groups of expenses on which they spend the most money during the month. The second most frequently indicated category of expenses (61% of responses) were those related to the need to pay bills and maintain a dwelling. A quarter of the responses (24%) concern transport expenses (transport tickets, fuel, car ownership charges). Loan instalments are currently one of the three highest costs for every fifth respondent (19%).

Covering everyday expenses more and more often prompts respondents to reach for their savings. As many as 40% of survey participants who have savings indicate that their financial resources have decreased since the beginning of the year. Two-thirds of people in this group (66%) admit that this is the result of rising prices of among others food and service charges. In turn, 21 percent of responses are related to the increase in the cost of loans. Only a fifth of those surveyed (18 percent) were able to spend their savings on the purpose for which they were intended.

- As research shows, we are increasingly looking for savings, choosing cheaper products, buying less or giving up ones pleasures. In savings, even small amounts matter. That is why we offer customers an additional opportunity to save money. Millennium 360° account holders can use the "Cashback for shopping" option and save on their shopping made via the mobile application or electronic banking. The solution works, for example, in popular food chains, cosmetics chains or on trading platforms. For those who are not customers of our bank, we recommend using the goodie smartshopping platform, which also allows you to receive a refund of part of the money spent in several hundred online stores. It is worth using this option - goodie users have already saved over PLN 31 million on their purchases - said Beata Krupińska, Director of the Marketing Communication Department at Bank Millennium.

According to respondents in the Bank Millennium survey, prudent money management will also be important in the near future. Nine out of ten residents of the Polish assume that prices will continue to rise. Most of them support the view that the inflation rate will remain at the same level as it is now (36%). Slightly fewer (31%) people say that prices will grow slightly slower, while almost a quarter of respondents predict an acceleration of the zloty's depreciation. Only 6% of people believe that the peak of inflation has been reached, while those who forecast falling prices account for only 3% of respondents.

Survey conducted for Bank Millennium on the Ariadna panel in July 2022. Nationwide sample N = 1070 people aged 18 years and above, representative of gender, age and size of the place of residence. Method: A survey conducted using the online survey method (CAWI).

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