Inflation back on the agenda: report

Intrum’s annual European Consumer Payment report shows that Europeans are concerned about the impact of rising inflation on personal finances and debt. And while recovery rates differ by region, income, and age groups – the pandemic has raised financial awareness among consumers, who are taking steps to improve their financial literacy and resilience.

“The pandemic has created a more financially polarised Europe. Countries and demographic groups have been affected unevenly; for example, low-income households and countries dependent on tourism and hospitality have suffered drops in income. At the same time, households and businesses have increased their savings ratio during the pandemic, with bank deposits increasing by more than 2 trillion euros,” Anders Engdahl, President & CEO of Intrum, said.

As many as 69 percent of respondents say they are concerned about the impact of inflation on their financial wellbeing. This figure rises to 79 percent in Southern Europe and 76 percent in Eastern Europe, compared to 65 percent in Central and Northern Europe. Many would struggle to manage a significant rise in prices. Four in 10 have less than 20 percent of their salary left after paying bills.

The pandemic has motivated consumers to improve their financial resilience.

(WBJ)