For the economist Jean-Paul Pollin, the booklet A will lose “4% of value this year”, because of inflation.
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“It’s a bad season for savers”, deplores Friday August 12 on franceinfo Jean-Paul Pollin, professor emeritus at the University of Orléans and member of the Circle of economists. The prices of consumer products sold in supermarkets increased by 6.4% in one year according to INSEE estimates. For the French who would have a taste for risk, buying shares would be the best way to make your money profitable, according to him.
franceinfo: How are savings doing with this inflation?
Jean-Paul Pollin: It’s a bad season for savers. When there is inflation, income that is not indexed to it, such as savings, loses value. So inflation at 6% and booklet A at 2% income, the latter will lose 4% in value this year. This is also true for life insurance, which is apparently the preferred financial product of the French and whose income will be around 2%. The Livret A is net of tax, which is not true for life insurance.
Is real estate still a safe haven?
Real estate will suffer from the rise in interest rates. In Europe, this is not yet the case, but the Central Bank will not be able to procrastinate for very long. And when interest rates go up, so will lending rates, and there’s a chance house prices will go down.
What other alternatives do we have?
If you’re risk averse, you can bet that company stocks have tumbled in the past six months and could rise again in the coming months. You have to have a taste for risk and some knowledge too. The best thing is to trust your bank’s financial advisor or an institutional investor. The best thing is to invest your money in remunerated cash.