Soaring cost of living forces Poles to change lifestyles — Analysis
Surveys show that many Poles keep their monthly expenses down to the minimum in order to survive with inflation at 12%.
Poland’s cost of living crisis is forcing people to cut back on restaurants and driving, with 36% keeping expenses to a minimum to make it through each month, a new survey has revealed.
According to a poll conducted by ARC Rynek i Opinia, 38% of respondents who could previously afford “luxuries” have given up on them. A researcher for the polling group, Dr. Adam Czarnecki, said people are “limiting consumption,” piling pressure on the economy at a time of “Stagflation” – i.e. High inflation is accompanied with subdued economic output.
It was also revealed that 38% of Poles spend more and are not saving as much, while 13% say they cannot save.
“36% of Poles admitted that they needed to reduce their monthly expenses. Another 49% (24%) said that because they couldn’t afford the basic necessities due to high prices.” the report said.
In addition, 35 percent of Polish car users say they’re cutting back on driving due to rising fuel costs.
A study revealed that Poles are cautious about financial risk. 18% said they would not take out a loan, while 26% said they planned to repay their existing loans soon due to concern over an increase in interest rates.
“One fifth of Poles (21%) say they prefer to purchase something than keep money in an account because it has a lower value.” the report says.
Dr. Czarnecki described it as a “very dynamic situation in the area of personal finance, in which consumers may feel insecure.”
Participants were between the ages of 18-65.
Poland’s inflation in April hit 12.4% compared to the same month last year
Statistics Poland’s May 13 report shows that the prices of housing, food and transport have increased 17% and 13.2% respectively. Prices for restaurants and hotels rose by over 14%
Food costs increased 4.4% in March compared to March 2012.
Apart from the ongoing global cost-of-living crisis that has been exacerbated due to the conflict in Ukraine’s, the main destination for Ukrainian refugees is Poland. The latest statistics from the United Nations High Commission for Refugees show that almost 3.4 Million Ukrainians have entered Poland since the outbreak of conflict.
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