Losses on deposits are over 9%. Inflation scares Poles

According to preliminary estimates, inflation in March exceeded the 10% mark, reaching 10,9%. This means that deposit owners lose as much as 9,6 percent annually on them. Polish investors fear rising inflation the most.

About the author

Pawel Majtkowski - analyst eToro on the Polish market, which shares its weekly commentary on the latest stock market information. Paweł is a recognized expert on financial markets with extensive experience as an analyst in financial institutions. He is also one of the most cited experts in the field of economy and financial markets in Poland. He graduated from law studies at the University of Warsaw. He is also the author of many publications in the field of investing, personal finance and economy.

Inflation in Poland close to 11%

After a drop in February to 8,5 percent. (from 9,2% in January), we have a strong increase in inflation in Poland again. According to preliminary estimates, in March it amounted to 10,9 percent. y / y This is the effect of the war in Ukraine and the related increase in the prices of many raw materials on world markets. It turned out that anti-inflation shield, including VAT reductions, incl. for fuel, natural gas and food, caused a drop in inflation in only one month - February. Although the shield still works and lowers the inflation level, it is less noticeable in the current situation.

So we joined the group of countries in Central Europe that previously recorded double-digit inflation readings. In February, inflation in Lithuania was 14,2%, in Estonia 12% and in the Czech Republic 11,1%.

Such high inflation means that Poles in bank deposits suffer record losses. On an annual bank deposit established at the beginning of April 2021 and completed in March 2022, the real loss of its owner was 9,6%. This is due to the fact that according to NBP the average interest rate on deposits opened in April 2021 for a period of 6 to 12 months was 0,2%. Even when choosing the best deposits on the market at that time - with 0,8 percent interest. - we lost as much as 9,1 percent

Poles concerned about inflation

Inflation is now a serious cause for concern for investors both in Poland and around the world. According to the study eToro Puls Individual Investor, in which 8500 retail investors in 12 countries were surveyed, shows that Poles of all nations fear inflation the most. In the fourth quarter of 2021, rising inflation was mentioned by as much as 66% as the main cause for concern. of surveyed investors from Poland, while in all surveyed countries inflation is of concern for 47%. respondents.

Unfortunately, the unstable international situation may continue to increase inflation, and thus the losses of depositors may continue to grow for several months.