Current accounts are at risk and what will happen to the savings accumulated with so much effort by many Italians? Everyone knows that Italians are a nation of savers who, compared to other European citizens, have more money in the bank. However, fixed assets in the current account do not protect against pressing inflation.
The latest report launched by Wealth information 2022created by Prometeia and Ipsos, analyzes the issue in detail highlighting critical points and risks that savers run in the coming year. Here’s a close look at the changes in current account savings and the recent ones innovations introduced by the ECB on the increase in interest rates.
Current account, here are the risks savings run in 2023
The savings of Italians are likely to be wiped out by inflation. The picture has been critical for several months and is getting worse. The report Wealth Insights 2022 produced by Prometheia and Ipsos clearly shows the slowdown in savings in numbers, not annotations reported in the margins, let’s talk about reality drop in the purchasing power of citizens.
The study shows the cut on purchases and the evident rush towards provisions as the only means of support for families.
It is the small savers and wealthy families who pay the highest price for the increases in electricity, gas and fuel,
The reduction in consumption will burn 270 billion eurosjust savings.
Inflation erodes salaries and pensions of Italians
The data contained in the report Wealth Insights 2022 by Prometheia and Ipsosdisclosed by Corriere della Serawere made taking into account theperformance trend on the stock markets and on the savings flows.
The picture immediately appeared dramatic as Prometeia proceeded to draw up a downward quotationcompared to the one made in 2021.
It is the middle-lower class who foot the heaviest bill, with savings of up to 25 thousand eurosso it is estimated that the average loss will be 2.8%.
While, for those who have wealth measured in terms of savings up to 50 thousand euros the estimated loss will be 6.6%.
For someone, with a prosperous bank account of the highest value of 100 thousand eurosthe average loss will be1.8%.
It will be to squeeze on the savings of the Italians the increase in goods and services, which means higher costs of electricity, gas and water, to which must be added the further increase of additional costs, such as garbage, fines, car tax and so on.
The prediction highlights, the pressure of inflation of +11.2% on the petty bourgeoisie, a good 3 percentage points more, if we consider that 8%, is the estimate of the increase of prices produced by ISTAT.
For the middle class, inflation reaches a ceiling of 7.1%, while for the wealthy, there is no considerable pressure, they don’t think price increases on assets and services and, not even that of bills.
The flow of inflation weighs on the investments of Italians
The picture changes face under the investment profile, as highlighted in the report, it is the rich who lose out. For the moneyed wallet, the loss estimate exceeds 4%.
For someone, who has invested a assets of 100 thousand euros the estimated average loss does not exceed 2.5%.
The expected negative influence on themarket trendhighlights a number of assets considered riskyin a difficult framework, species consider the major 18% equity exposure for the rich, while for families below the wealthy bracket it is just11%.
Basically, theinflation index registered shows a lash on both small and large estates, a flow divided between movements on savings and market trends.
The reduction of inflation will hit to the extent of 9.2%, the savings between 25 and 50 thousand euros, while it will descend to 6.1% for assets between 50 and 100 thousand EUR. And finally, for those who exceed the 100 thousand euros of savings the rate will settle at 6.6%.
Read also: Best fixed and variable rate mortgages December 2022
New increase in interest rates operated by the ECB
Meanwhile, the tripping of the ECB on therate increase to 2.50%, it helped to create imbalances and doubts, certainly, it was an unwelcome move by various political exponents.
Frankfurt’s decision is in contrast with the country’s economic performance, but also one obstacle maneuver towards the European markets.
The ECB in an unkind move increased i interest rates of 50 points.
The first critical issues could be registered on two fronts: mortgages and loans.
Frankfurt’s aggressive policy threatens to penalize Italian families even more who have taken out a loan.
With the recorded increase of cost of money at 2.5%the projection of the installments at 6%, could soon become a reality.
The ECB’s latest move turns into one narrow for families with variable mortgages, for which an increase in costs is expected.
The increase in interest rates, a bad blow, albeit foretold, could have been blocked, avoiding further raging on the low-income families.
