Massive bills a major cost for concern...
WAR AND COVID ARE NO LONGER MAIN WORRIES September 19, 2021 STATS OF THE DAY
THE cost of living crisis is the main worry for the public with an increasing amount of people struggling to pay their bills, a new survey has revealed.
The study found that there has been a significant drop in the proportion of consumers who feel that they are saving enough and this has been put down to rising prices.
Both the war in Ukraine and Covid have dropped back considerably in the list of top concerns the public have about the future.
And the survey found that the coronavirus pandemic has almost dropped off the list of concerns at three per cent, well below climate change (16 per cent), global recession (14 per cent) and the cost of housing (12 per cent).
The Bank of Ireland’s Savings and Investment Index found that inflation is the number one concern amongst the Irish public with many households also worried about back-toschool costs.
The Index also highlights the growing differences in concerns between generations.
Inflation and the cost of living rank highest amongst both 30-59 year olds and those aged between 16 and 29.
While it increased significantly amongst the over 60s, this age bracket was alone in ranking the war in Ukraine as top of their concerns.
Attitudes
The study also found that consumer attitudes to saving are changing significantly in the face of rising inflation.
In contrast to the pandemic period when the Savings Index reached a peak, the most recent survey illustrates the impact of inflation.
Back in May 2020, the index for a “Good Time to Save” reached a high of 117 whereas by August 2022 it had dropped to 92.
When asked whether it will be a good time to save in six months, that score drops to 85, the second lowest level since 2019.
The survey found that more people are now saving but the amount they are putting away has dropped significantly.
The index for “Do You Save” rose six points to 96 but the index for “Savings Amount” dropped 12 points to 78, its lowest ever level.
The survey results continue to suggest consumers may be trying to save in the face of uncertainty but they are struggling to do so, given the rising cost of living.
FAR OFF ISSUE: Ukraine war
Uncertain
Irish consumers are also showing themselves to be uncertain about the economic environment.
A Bank of Ireland chief investment strategist said: “Rising inflation is having a significant impact on how people view their finances.
“So much so that despite the challenges presented by Covid and the Russia-Ukraine war, the impact of rising prices is possibly the most significant in the past three years in terms of how people view saving and investing.
“With interest rates still at low levels and inflation at around nine per cent, consumers clearly recognise that real purchasing power is quickly eroding and it is little wonder that it has caused people to re-evaluate.
“For some the environment is proving challenging enough that they have scaled back on savings.”
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