Poland’s Consumer Price Index (CPI) will significantly exceed the central bank’s target for the next three years and will likely hit a peak of 15.8% YoY in August, according to a report published by a leading economic think tank on June 14.
“For the next three years, inflation will considerably exceed the 2.5% inflation target of the National Bank of Poland (NBP),” Polish Economic Institute (PIE) economists wrote in a paper, adding that, in 2022, average annual inflation would reach 13.2%.
In 2023, average annual inflation will fall to 8.6% and in 2024 it will drop to 4.5%, PIE said.
According to PIE analysts, the high inflation has been mainly caused by growing food and energy prices, which are responsible for 66% of the total increase in prices.
Referring to food price rises, PIE economists wrote that, in their opinion, they would exceed 10% in 2022 and 2023.
“We estimate that food prices will grow by 13.5% in 2022, and by 11.5% in 2023, with grain and meat prices going up at the fastest rate,” PIE said.
In May, prices of consumer goods and services increased by 13.9% YoY and by 1.7% MoM.
In April, the prices of consumer goods and services increased by 12.4% YoY and by 2% MoM. (The First News/Business World Magazine)
