{
  "id": 2050587,
  "title": "Europeans boost their savings for fear of inflation",
  "url": "https://urgent.news/2026/08/19/los-europeos-elevan-sus-ahorros-por-temor-a-la-inflacion",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-19T22:43:41.000Z",
  "source": {
    "name": "Expansion ES",
    "slug": "expansion-es",
    "url": "https://www.expansion.com/economia/financial-times/2026/08/20/6a8630d3468aebf57c8b4587.html"
  },
  "original_language": "es",
  "account": "European households are increasing their savings out of fear of inflation, according to recent data. Four-fifths of households across European countries are saving more compared to pre-Covid-19 levels and are building up financial reserves due to a string of crises. Economists warn that intensifying energy crises and rising inflation could push many European consumers to double their savings at a time when Americans are spending more. Despite consumer confidence remaining stagnant and the intention to save exceeding pre-pandemic levels, European households remain cautious. The rise in energy prices due to worsening hostilities in the Middle East may further intensify inflation fears among households and hinder recovery in Europe. The gross saving rate in the eurozone reached 14.3% in the first quarter of 2026, significantly higher than the 12.5% average of the five years before the pandemic. In contrast, the US saving rate is below pre-pandemic levels. Various factors contribute to the reluctance to spend, including repeated crises that have eroded confidence and concerns about a new inflation surge eroding savings and affecting living standards. Inflation in the eurozone was at 2.9% in July, a significant increase from 2025. While high saving rates could provide the necessary capital for a consumption-driven recovery, there are no signs of change in the major economies of the eurozone, such as Germany. While US household consumption continues to support the economy with strong demand for goods and services, European households remain more cautious, and the increase in savings is hindering consumption. Notably, the labor market is strong in countries like Germany, suggesting that weak confidence and low consumption cannot be attributed to job loss fears. However, people are more sensitive to bad news. Since the pandemic, crisis after crisis has dampened many people's optimism about the future, according to Holger Schmieding of Berenberg Bank. He believes that private consumption will be the last sector to recover. Unlike the US, Europeans have a smaller direct exposure to the stock market, which means they have not directly benefited from the surge in stock valuations. According to a study by research centers like the Centre for European Policy Studies, European households have nearly a third of their financial assets in cash and deposits, compared to 12% of US households, which predominantly invest in stocks and investment funds. Many households are trying to rebuild their financial reserves as inflation has eroded not only their purchasing power but also the real value of their savings.",
  "summary": "Households, tired of the crises and of prices eroding their wealth, avoid spending.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}