Inflation still a big concern for many, research finds
More than a quarter of households remain concerned about inflation, new research has found.
That is despite the annual rate of inflation falling back to 1.7%, down more than four percentage points in the last year.
After inflation, the Bank of Ireland Savings and Investment Index found the cost of housing and rent was the next biggest worry, with almost one in five citing it.
That is up three percentage points since August last year.
Climate change was the third most prominent concern, cited by 13%, followed by the war in Ukraine and the Middle East conflict, with both at 10%.
“Our Index shows that attitudes to saving were relatively static last year, while there was somewhat of a rebound in those who see it as a good time to invest,” said Kevin Quinn, chief investment strategist at Bank of Ireland.
“It isn’t surprising that inflation, cost of living as well as housing and rental costs remain a concern, as households are still dealing with the cumulative effect of price rises.”
“The benefit of inflation falling in the past year will take time to filter through to day-to-day budgeting and impact saving levels.”
“In contrast, strong stock market returns over the past two years has clearly helped restore some confidence for investing.”
Overall, Bank of Ireland found that the sentiment towards both savings and investment combined has improved since the last survey, rising to 83 in July, up from 76 in August of last year.
A quarter of respondents said they see now as a good time to save, up slightly on a year ago.
But more than half said they are not saving anywhere near as much as they should be, or a bit less than they should – similar to last year.
“2023 and 2024 both delivered very strong returns to investors who were more invested in the stock market,” said Mr Quinn,
“Even with recent volatility, the market is up about 13% so far this year and it delivered over 18% last year.”
“So this has clearly helped to restore some confidence. But investors are also cautious – as indeed we are right now – with most of the view that we may see a period of consolidation in the months ahead,” he said.
When it comes to the stock market over the next six months, more than half of consumers said they think it will be the same, one in five said it will be up and a little over a quarter said it would fall.
Article Source – Inflation still a big concern for many, research finds – RTE
