Poland’s inflation is expected to decelerate starting in March 2023, the Polish Economic Institute (PIE), a government think-tank, has said commenting on the latest figures from the Central Statistical Office (GUS).
GUS reported on October 31 that Polish consumer prices soared by 17.9% YoY in October on by 1.8% MoM.
In its comment, PIE said that in October inflation was pushed up by rising food and fuel prices.
“There are more energy price hikes ahead of us, which will drive this indicator up even more in the first quarter of next year,” said an expert from PIE, Jakub Rybacki.
“Inflation will begin to slow down as of March,” he added.
Rybacki noted that October’s inflation rose in line with market forecasts.
“Inflation is still widespread, price increases are common for both industrial goods and services,” he said.
PIE estimates that core inflation, excluding food and energy prices, rose from 10.7% to 11.1%.
According to Rybacki, changes in energy and food prices will continue to be of key importance in the coming months.
He said that the decisions of the Organisation of the Petroleum Exporting Countries (OPEC) to limit crude oil production raised its prices, which already translated into fuel prices at filling stations.
“In January 2023, we will also expect an increase in electricity and gas tariffs, bills will increase after exceeding certain consumption thresholds,” Rybacki said.
According to PIE, food prices on world markets are rising more slowly, “which will soon translate into domestic prices as well.”
Inflation expectations of companies are also falling, PIE noted.
“In such an environment, inflation will stop growing. Nevertheless, it will remain at double-digit levels for a long time,” Rybacki said. (The First News/Business World Magazine)