Inflation in Poland, which hit 16.6% in December 2022, will remain at the double-digit level for the first three quarters of 2023, an economic think-tank has forecast.
Prices of consumer goods and services increased by 16.6% YoY in December 2022, the Central Statistical Office (GUS) reported on January 5. The reading is lower than economists expected and marks the second consecutive month in which inflation fell from October 2022 record-high level of 17.9%.
In a forecast on January 5, the Polish Economic Institute (PIE), a government-affiliated think-tank, said that inflation would peak in February, but the first signs of a slowdown in the growth of prices were already visible.
PIE said inflation would ease significantly only in the second half of the year, adding that “inflation will remain in the double-digit area for the first three quarters of 2023.”
Quoting GUS data, PIE said that a decreasing number of companies were planning to raise prices, which was also seen across the region and in the EU.
However, H1 will see a steep rise in electricity bills and prices of food, while energy-intensive firms will try to pass on their increased costs to consumers. (PAP/Business World Magazine)
