What’s the best thing you can do without money when you’re short on money? More and more Swiss households are grappling with this question. This has been confirmed by a survey made available to Blick by Bank Cler. “Inflation is not just a theoretical measure – people feel it every day and they have started to adapt by cutting spending,” explains Samuel Meyer, Bank Cler CEO.
Of the 506 respondents aged 18 to 74, 58 percent said they would like to cut their spending overall. Even people who are not a burden on the household budget reduce their consumption.
What is waived?
Larger purchases are primarily avoided. 43 percent of respondents already do or plan to do so. They put off buying a new refrigerator, a new racing bike, or other major expense items. Or spend less money. In other words, bought something cheaper.
Swiss people see the potential for greater savings in their leisure time and when traveling: a third want to limit their leisure activities or at least save while doing these leisure activities. So skip the ski weekend. Or a family trip to the zoo.
The travel industry also needs to be prepared for one thing: 30 percent of respondents won’t be on vacation until further notice. 21 percent want to cut their spending on travel or vacation. Mallorca instead of Maldives, Central Plateau instead of Mediterranean.
However, not only activities that can generally be described as luxury are affected. Savings are also made in daily necessities. 33 percent of those surveyed already do this. Spicy: 13 percent shop from abroad to save cost.
Swiss people are also saving less: almost a third are currently putting less money aside.
Cler-CEO Samuel Meyer adds: “I’ve heard that there is less warming around me. On the one hand, to save costs. But also to contribute to the possible power outage. »
about worry
Persistent inflation and concerns about its consequences are high or very high for three-quarters of all respondents. This is despite the relatively low inflation rate in Switzerland, at 3 percent.
This does not change the fact that more than half of those surveyed stated that inflation is a significant or even heavy burden on the household budget. 34 percent perceives inflation “partially”.
Households with a gross income of up to CHF 6,000 are more burdened than the average. However, higher income brackets are also worried that inflation will remain high or increase. From an income exceeding only 10,000 francs, the proportion of interested participants decreases.
This explains why less is now spent. Only 11 percent of respondents say they haven’t changed their behavior. However, a large 42 percent cut their spending due to current inflation. But not everywhere: “The way I see it, people don’t withdraw their Christmas presents and they want to give people joy,” says Samuel Meyer.
Visible relief
Bank Cler states that caution is justified. However, the prospects are not entirely bleak. Inflation has now stabilized and the first signs of falling prices in international energy markets point to easing price pressure.
“Inflation figures will likely point up again at the beginning of 2023,” said Martin Eichler, chief economist at BAK Economics. “However, this is mainly due to delayed price adjustment, as with electricity.” This does not change the fact that the peak of the inflation wave has probably already been reached.
Eichler predicts that inflation will drop gradually over 2023: “By the end of 2023 it should again fall below 2 percent.” In other words, within the framework that the Swiss National Bank identifies with price stability.