How to imagine the depreciation of the Czech crown?

The concept of currency depreciation has become increasingly common lately, but can we really imagine what it means? Even if the same banknote is still lying on our table, the amount of goods we will be able to buy for it is changing. With rapidly rising inflation, currency depreciation is now much easier to see than before, and there is no need to look as far back as history because of this.

INCREASING THE PRICE OF FOOD

Buying groceries is a very important item in your budget. We have to eat and if we want to live a little healthy, we also look at the quality of the food we buy. If you regularly include meat, vegetables, fruits, dairy products, but also pastries in your diet, you could not help but notice how the prices of individual items increased due to the covid crisis. Every now and then a crown and a few pennies are added, and the result at the cash register is diametrically different. After all, let's take a look at the table, as it was in 2019 and 2020. Needless to say, 2021 is yet to tell us, but we are already watching the rising trend in prices today.

AVERAGE FOOD PRICE IN 2019 AND 2020 (1)

If the increase in prices starts to take too much of a line over your budget, come with us to see how you can improve the situation better thanks to the cashflow table from the article Planning is the basis of success: how to make your own cashflow tablebecause we don't just stick to food.

FUEL PRICE

It has also become more expensive at gas stations. Drivers do not pay a little extra for each mileage. Average fuel prices in 2020 were around CZK 27, -, while in 2021 they exceeded CZK 30 in April, - and they will not look back below this limit for a long time. After all, let's compare the evolution of prices here as well.

AVERAGE PRICE OF FUEL (2)

If in October 2020 we wanted to go on a trip and refuel for 500 CZK, - we filled our tank with 18.13 liters. In October 2021, our five-hundredth was worth only 14.29 liters.

Over time, we spend more and more money on the same purchase. But what about our paycheck? Is it increasing as fast as the digits on price tags in stores?

Protect your money and invest with us.

If you are interested in inflation a little more, take a look at the article A scarecrow named inflation. How to protect your investments from it?

Sources

1 - E15.cz

2 - CCS.cz