According to a study by the Setelm Observatory and BNP Paribas, inflation remains the main issue that worries Europeans, even if they do not view it in the same way from one country to another.
Inflation appears to be “felt more strongly” by residents of southern European countries, particularly Portugal, Italy and Spain, and remains a major concern for Europeans, according to a study by the French bank BNP Paribas’s Setelim Observatory in 10 countries.
Overall, 88% of Europeans believe that prices have risen in 2023, of which 59% believe they have risen “strongly” (-10 points over one year). 29% believe they have “risen somewhat” (+7 points). However, the perception of inflation is not the same across countries. In Portugal (81%), Italy (65%) and Spain (65%), consumers are most likely to believe that prices have risen significantly. In France and Germany, large majorities (89%) say that prices have risen.
The perception of inflation is something different from inflation itself. What is measured is consumers’ sense that their purchasing power is declining. Sometimes it feels like it is declining when it is not, especially because of the increasing costs of long-standing expenses, such as housing.
The Observatory points out that “even if inflation is lower than it was a year ago, it remains a major concern for all Europeans: for 87% of them, it is the most important concern given the international geopolitical situation (83%).”
The majority of Europeans want to save more.
This survey was conducted by Harris Interactive in November 2023 in Germany, Belgium, Spain, France, Italy, Poland, Portugal, Romania, the United Kingdom, and Sweden, among 10,389 people aged 18-75 from nationally representative samples according to the quota method.
Low inflation and high interest rates “are encouraging Europeans to save more,” Flavien Neuve, economist at BNP Paribas Personal Finance, told AFP. “53% want to save more money in 2024 compared to 51% last year.”
Overall, the Observatory highlights the “urgent need” of many families to “take care” of their budget, including the middle classes. “If there is a positive aspect, it is that food waste has been, so to speak, a victim of this strong inflation of food products,” says Flavien Neuve. 83% of those surveyed say they have succeeded in reducing their food waste, a trend that is even more pronounced in France (87%). In addition, more than one in three Europeans (35%) say they “eat less than in the past”. The figure is even higher in France, where it reaches 41%.
