According to a recent survey by the Czech polling agency CVVM, three-quarters of Czechs found last year’s inflation rate unacceptable. The survey revealed that approximately eight out of ten people anticipate further currency depreciation this year, with 35% of respondents predicting a significant decline.
The inflation rate, which fell below 10% for the first time in a year and a half in June, has significantly reduced the real income of Czechs. Over two-thirds (68%) of respondents stated that their household income could buy less than it did a year ago. In contrast, only one in twenty-five respondents (4%) believed they could buy more with their current income than a year ago.
The perception of the development of real household incomes has remained at a historical low since 2013. The negative sentiment is similar to what was seen in surveys conducted in 2008 and 2012. Households that perceive their standard of living as good have experienced a 60% income reduction, while those living in households with a declared poor standard of living have experienced an 80% reduction in income.
The inflation rate, which has remained above 10% since last February, was perceived as unacceptable by three-quarters of respondents. A comparison with a previous survey conducted in mid-2022, which examined inflation for 2021, shows that the situation has significantly worsened. The proportion of people who consider inflation unacceptable has increased by 35 percentage points, while the proportion who consider inflation somewhat acceptable has fallen by 32 percentage points. The agency stated that this is the worst survey result since 1993 when the survey began.
People are not optimistic about the future either, with 78% of respondents expecting further currency depreciation and 35% believing they can buy much less for the same money. Inflation expectations, which have gradually worsened since 2016, peaked last year, surpassing the worst result from 2008. The current result, compared to last year, represents a significant improvement. However, current inflation expectations remain worse than at any time before 2013.
The survey, conducted from March 27 to May 22, involved 834 respondents.