Inflation decreased, real yield increased: good news for investors

Services continue to drag inflation

Although inflation generally decreased, the prices of services continued to rise by 9.5%, the most significant price increase of all categories examined. On the other hand, we experienced a price decrease in other sectors, for example in the case of consumer durables (-0.2%) and household energy (-4.3%). The increase in food prices was only 2.4%, which also contributed to the lower inflation rate.

Improving investor outlook: increasing real returns

The slowdown in inflation is particularly favorable for investors, as it increases real returns. While inflation rose above 25% at the beginning of 2023, the return on government securities was only 4.3%, which meant a serious real loss of 17%. However, the situation has improved significantly since then. In March 2024, the retrospective real yield reached 10.6%, which already created a more favorable situation for investors.

According to the August data, in addition to the nominal yield of 9.3% and inflation of 3.4%, investors in short-term government securities achieved a real yield of 5.7%. This shows that investments also increased in real terms, which is an encouraging trend for the future.