The impact of inflation on the choice of financial instruments in which Polish households invested their savings

Abstract

Households store their savings in various types of financial assets. The value and composition of these assets has changed significantly over time. The study demonstrates a statistically significant relationship between the inflation rate and the value of certain financial assets in which Poles invested their savings. During periods of increased inflation (quarterly inflation rate hovered around 2%), Poles increased their cash and deposit holdings, while during periods of high inflation (quarterly inflation rate hovered around 5%), Polish citizens reduced their cash and other holdings. The analysis was based on data from the National Bank of Poland’s quarterly reports data for the period of 2004-2025 as well as data from the Central Statistical Office.