Household spending is rising as people try to save on travel and food

Household spending in the Czech Republic is increasing, even though inflation remained below two percent at the start of this year. According to a survey conducted by the Ipsos agency for Home Credit, 65 percent of households now have higher monthly expenses than a year ago, with higher food prices and overall price increases being the main reasons.

People are trying to save money mainly on travel, but also on food and clothing.

“The data show that most households perceive higher expenses today, but rising prices hit lower-income budgets the hardest. Among households with an income of up to CZK 30,000, 29 percent of respondents reported a significant increase in expenses, while among households earning more than CZK 70,000, it was only eight percent. Women and people aged 45 to 53 also perceive rising costs more strongly,” said Home Credit chief analyst Jaroslav Ondrušek.