Comment: Higasa Club is a solution to rising inflation

The Central Statistical Office published a few days ago information on inflation for August, calculated year-on-year. What does 2.8% mean for Poles? Taking as an example savings of PLN 100,000, from August 2018 until today this amount is worth less by about PLN 2,800. It should be emphasized that this is one of the higher indexes over the last few years. So maybe it is worth recalling in simple terms what inflation is and whether looking at an average makes sense? – wonders Michał Ciapka, member of the management board of Higasa Properties.

Inflation determines the pace at which prices of various types of goods and services rise at a given time. Due to the fact that no one buys only one good or service all the time but many different goods and services, an average is prepared, which means that the number presented is only the result of an average value of the basket, which slightly distorts reality. Why is that? Here, it is worth recalling a famous saying “me and my dog have three legs on average”.

How is it possible that I have less in my wallet?

Sinking deeper into the CSO report, you can see that, for example, inflation for foodstuffs (food, non-alcoholic beverages) exceeds 7%, hence many consumers feel that they have “less in their wallet” in their everyday life. This situation is also often reflected in other commodities that meet the basic needs of the consumer.

On the other hand, there is a noticeable drop in fuel prices, which is certainly positive. That is why an average in the context of the entire market makes sense. It must be kept in mind that the level we are at now is the result of an increase in inflation since the beginning of the year, when its level was below 1%. Even a decline of 0.1% compared to July does not affect the overall trend.
It should also be remembered that inflation fluctuating around 3% is a completely normal phenomenon in the free market economy, while the “problem” lies elsewhere: firstly, it is an upward trend, and secondly, it negatively affects real interest rates. What does it mean? Interest rate of the National Bank of Poland (NBP), including the main interest rate correlated with, among others, the level of interest on bank deposits is at a level twice as low. Let us once more use as an example the amount of PLN 100,000. Assuming an average deposit with an interest rate of approx. 1.5% per annum, next year you will actually lose about PLN 1,500. If you keep your money under a mattress, in a sock and even in a bank on an ordinary current account, the loss will amount to nearly 3000 PLN! This money is lost irretrievably.

It doesn’t have to be this way!

The market brings you various opportunities to diversify your capital, including the emerging commercial real estate market, which we make at Higasa Properties available for customers looking for alternatives. Statistics clearly show that Poles belong to the group of Europeans who work the most. Therefore, even for this reason, it is difficult to accept that we are wasting our hard-earned money consciously. That is why we educate our clients, and not only them, to consciously manage their assets. And in fact, the way to achieve it is simple – just contact us and make an appointment to join the Higasa Club.


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