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PB2023-004 Household savings diminish due to high inflation

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Willemstad/Philipsburg - Society is aware that inflation reduces purchasing power, especially when salaries or pensions are not indexed. Few people realize, however, that inflation has a similar adverse impact on savings. Our estimations show that in 2022, household savings at local banks in the monetary union decreased in real value by approximately NAf. 146 million. This is caused by record-high inflation rates exceeding the interest rates earned on savings accounts. As inflation is expected to keep surpassing interest rates, the negative effects on savings are likely to continue in the coming years.

Last updated: 19.02.2024 17:02