Czech republic survey predicts poor Christmas due to rising prices and inflation
  • Czech republic survey predicts poor Christmas due to rising prices and inflation

Pensions fall under the responsibility of the Ministry of Labour and Social Affairs

(Alles Europa News English ) – Pensions fall under the responsibility of the Ministry of Labour and Social Affairs, which is led by Marian Jurečka (KDU-ČSL) in the current government. However, his cabinet colleagues are also commenting on the reform.

For example, Prime Minister Petr Fiala (ODS) said this week that he does not want to debate extending the retirement age. He then elaborated on the idea on social media.

According to Fiala, pension reform is needed. “It is necessary so that people before forty have a chance for a decent pension,” he tweeted.

“I would like a reform that enjoys broad consensus to last a long time,” he added. He would probably like to agree on its form with the current opposition in the Chamber of Deputies.

The Finance Ministry this week upgraded its inflation forecast of 15 percent for this year, up from 16.2 percent in August.

By contrast, the inflation forecast for next year has risen to 9.5 percent from the previously expected 8.8 percent.

In September, annual inflation rose to 18 percent and was among the highest in the European Union. Only the Baltic countries and Hungary saw faster price growth, while inflation was ten percent in the euro area.

The Czech republic officials said all economic forecasts are burdened with a higher degree of uncertainty. It is therefore necessary to monitor month-on-month inflation trends and consumer behaviour.

According to officials, little is also said about the fact that due to high inflation, the savings of the population are losing value, and therefore it is necessary for price growth to slow down.

Next year, the minister wants to introduce measures that would reduce the structural deficit by one percent of GDP from 2024, i.e. by about 70 billion crowns.

“I will certainly propose the abolition of many tax exemptions,” he said in his message to the media.

Regarding the government’s proposals to reduce expenditures and increase budget revenues, he said that they make economic sense, but the government must also take into account the state’s investment activity and maintaining social peace, which complicates the debate.

He added that a number of measures may not be abolished altogether, but reduced aid or better targeted.

According to him, support for building savings no longer fulfills the purpose for which it was introduced at a time when it was one of the first ways for young families to save for housing.

He also said that in the case of tax increases, it is necessary to consider whether such measures would actually bring higher revenues to the state budget.

For example, in the case of tobacco, it is necessary to consider whether raising the tax would lead to people buying more abroad.

Analysts have previously pointed out that October inflation was distorted by the inclusion of an energy-saving tariff and the waiver of the fee for supported energy sources.

Without these measures, price growth would have accelerated to more than 18 percent compared to September.

According to Stanjura, it is necessary to monitor mainly the month-on-month trend in inflation.

“It is important that the steps taken by the Czech National Bank and the government are aimed at getting below double-digit inflation next year and approaching three percent within two years,” Stanjura told Czech Television.

CNB Vice-Governor Eva Zamrazilová said on the programme that she expects inflation to reach consistently single-digit levels during the second quarter of next year, Alles Europa News recalls.

“Unless the structural deficit is significantly reduced, we will not be able to maintain an inflation target at a reasonable price,” she warned.

Alles Europa News reports that the Patron GO survey and others Czechs noted that “People limit entertainment”

The survey, this time for Patron GO, shows the efforts of Czechs to save.

According to the survey, almost half of Czechs intend to reduce their expenses, most often for entertainment, restaurants or leisure activities, due to rising prices.

About a quarter of people want to find another job and a tenth want to change jobs.

In the Czech Republic, according to the survey results, 27 percent of people would be the first to cut down on entertainment, the same share of restaurants and 17 percent would reduce leisure time expenses.

30 percent of Slovaks would give up restaurants due to rising prices, 20 percent would cut back on entertainment and 16 percent on leisure activities.

Roughly one tenth of Czechs and Slovaks would look for a cheaper energy supplier.

According to the authors of the survey, almost two-thirds of Czechs of working age expect their financial situation to improve within a year.

Less than a fifth, on the other hand, are afraid of getting worse.

The remaining 17 percent believe it will not change. Slovaks are slightly less optimistic, with 57 percent of respondents expecting an improvement in their financial situation. 19 percent of Slovaks expect the situation to deteriorate, the same share as in the case of Czechs.

Survey participants aged 18 to 50 were users of the Patron GO mobile app, which helps keep an eye on family budgets.

Czechs are preparing a poorer Christmas. Most people will save, some plan to go into debt for gifts

Almost two-fifths of Czechs plan to spend less on Christmas this year than a year ago, while nine percent plan to increase their budget.

Approximately 74 percent of people can fit into the amount of 10 thousand crowns. These are the results of a November survey conducted by Ipsos for Port’s investment platform.

Roughly four out of ten Czechs plan to spend up to CZK 5,000 on Christmas this year, more often it will be young people under 26 years of age. Another 35 percent of respondents want to invest between CZK 5,000 and CZK 10,000 in Christmas shopping.

In the range of CZK 10,000 to 15,000, 16 percent of Czechs will move.

“It is interesting that although statistically men have 19 percent higher incomes than women according to data from the Labor Ministry from the middle of the year, in terms of amounts, both groups plan to spend almost the same with a difference of only about one percent in favor of men,” said Port analyst Filip Louženský.

The amount exceeding CZK 15,000 is most often spent by people in the age category between 36 and 44 years, which is the most active age group and at the same time parents who have higher Christmas expenses because of their children.

Three out of ten Czechs also give cash under the Christmas tree, a quarter give them experience vouchers. Up to seven percent of those who plan to spend 15,000 crowns or more on Christmas want to go into debt to buy gifts.

The largest savings will be made in the South Moravian Region and the Vysočina Region, where 45 percent of respondents answered this way in both cases.

People with university education are going to reduce the least (30 percent), while those with basic education (50 percent) will save the most.

The first peak of pre-Christmas shopping is the end of November, when the Black Friday discount event is traditionally held.

According to the Association for Electronic Commerce, Czechs will spend around seven billion crowns during it, which is roughly the same as last year.

According to the Heureka shopping advisor, the actual discounts during the Black Friday event are around 19 percent every year, while the differences in product prices for individual retailers can vary by up to 50 percent even without discount events.

CZC, which offers discounts throughout November, therefore shows customers the development of its price in the past on a graph for each discounted product.

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