Current accounts of Italians decreased by €152 billion over the year due to inflation
Kyiv • UNN
The bank accounts of Italian households shrank by 152 billion euros over the year due to inflation, and savings were used to fight rising prices and expensive loans.
The figure of financial losses relates to the for the period from October 2022 to October 2023. The reasons include households using their savings, shifting of liquidity into bank instruments, and higher interest rates on loans. on loans.
This was reported by UNN with reference to the Unimpresa report and Corriere della Sera.
Details
Current accounts of of Italians have suffered from inflation and the cost of living, the Italian newspaper writes. It is noted that for the period from October 2022 to October 2023, the total balance bank deposits of families and businesses fell by 152 billion euros, from 1452 billion to 1300 billion. This equates to a 10.5% reduction.
The data relate to, when Italian families used their savings to cope with the a surge in prices and then higher interest rates on loans, and this forced companies to use their bank reserves to replace debt that had become too burdensome.
Among the factors that influenced the current situation:
- The use of reserves, especially by households, but also by businesses, to cope with rising prices;
- Raising interest rates on loans that have become too expensive.
- Another factor is the shift of some liquidity into banking instruments that provide customers with higher returns, according to Unimpresa, a research center that found that some of the money in current accounts, about 85 billion, has been moved to deposits. For these deposits, banks recognize an average interest rate of more than 3%, while for current accounts the average is less than 1%.
Total private deposits decreased by EUR 78 billion (-4.5%) between October 2022 and October 2023. to October 2023, falling from €1,701 billion to €1,623 billion. In particular, household reserves decreased by EUR 66 billion (-5.6%), from EUR 1170 billion to 1104 billion.
The world's population grew by 75 million this yearDec 29 2023, 01:35 AM • 33601 view
The decrease in deposits reflects the need for families to use their savings to cope with with rising prices and economic difficulties.
Inflation is the worst and most unfair of taxes: it hurts the weakest segments of the population and limits the ability of businesses to invest in growth. The price index has fallen from 10 percent to 5 percent over the past year, but the damage is still there for all to see. The ECB's remedy has proven to be limited and restrictive
The expert emphasized that at the moment "a change in the trend is needed, and the cost of money should be to be reduced in the first half of 2024".
Ukraine's national debt exceeds UAH 5 trillionDec 28 2023, 03:00 PM • 70991 view
