In this article we discuss factors that can increase or decrease your purchasing power . Purchasing power, of course, depends on the economic situation in the country as a whole.
Last year in 2008
What are actually the factors that can decrease or increase purchasing power?
According to many economists, 2009 will be characterized by negative inflation or deflation. Prices will be lower for a few months than in 2008. Unfortunately, it does not mean that life will become cheaper, prices will not rise so quickly. So this is not so positive news for your purchasing power.
Shopping will become more expensive
According to the same forecasts, the average family will spend USD 209 more in 2009 than in 2008.
Spend less and save more is the message
The economic crisis hits hard, people fear for their jobs. Purchasing power is lost. That is why many economists predict that more will be saved in 2009 than in 2008. The savings rate of the National Bank will also rise and will amount to 14.3 percent.
Those were the negatives. Now we list the pluses.
Oil prices are falling
Negative inflation is of course related to falling oil prices. For the family budget, this decrease is also a plus, because it means that an average family will be able to save 491 US dollars in 2009 on diesel, fuel oil and gasoline. In this way you compensate for the declining purchasing power.
Food prices rise less and less quickly
Food prices rose sharply in 2008. Food prices rose by 5 to 6 percent. In the year 2009 will not bring great relief, but prices will not rise so quickly. Some products will become cheaper, which is of course good for your purchasing power.