The extremely high inflation is slowing down Germany’s savers. According to a survey, every second person (53.9 percent) is currently putting less money on the high edge or is currently unable to save anything at all because the sharp increase in expenditure, for example for energy, is eating up the household budget. This was the result of a YouGov survey commissioned by Postbank, which belongs to the Deutsche Bank Group.
According to the first official calculations, consumer prices in September of the current year were 10.0 percent above the level of the same month last year. Inflation in Germany thus jumped to its highest level since the early 1950s. The Federal Statistical Office will publish details of the September figures this Thursday (8:00 a.m.).
According to the survey, almost a quarter of people (24.9 percent) in this country have stopped saving because their current income just covers their expenses. According to their own statements, more than one in ten (11.1 percent) already have higher expenses to cope with than income is available and can therefore no longer put any money aside.
It’s not just affecting low earners
“The rising prices are such a heavy burden on consumers that every second person has to reduce their savings or stop altogether. This affects not only those on low incomes, but also those on middle incomes,” summarized the chief investment strategist at Deutsche Bank for private and Corporate Clients, Ulrich Stephan. “A growing number of savers no longer have funds that they can invest permanently.”
Energy and food have been the biggest price drivers for months. More than a third (34.7 percent) of the 2,058 respondents said they would like to build up financial reserves because of the increased prices for gas, oil and electricity. But this is not possible for them.
“Our survey shows that every second tenant of an unrenovated property would like to build up financial reserves for rising energy costs, but is not able to do so,” explained Stephan. The federal government wants to relieve people with price brakes for electricity and gas.
Higher inflation rates reduce the purchasing power of consumers, who can then afford less for one euro. Those who can save are now getting some interest again. But because inflation is significantly higher than interest on savings, the value of the money in the account decreases.
The clear majority of respondents (68 percent) correctly assess the effects of inflation on savings. However, 7.3 percent believe that inflation increases the value of their savings.
