Adam Glapinski, the governor of the National Bank of Poland (NBP), has said that inflation is falling, as predicted in forecasts, and that this process will continue.
“As we predicted in the projection, inflation is definitely falling,” Glapinski confirmed during a press conference on June 7, a day after the NBP’s Monetary Policy Council decided to keep all interest rates unchanged for the ninth month in a row.
He added that “the rapid process of falling inflation, including core inflation, will continue.”
Inflation hit 18.4% in February before starting to slide. In May, it was already down to 13%, which was the lowest level in a year.
Glapinski pointed out that “the fall in the inflation rate by more than 5% within five months is a completely unique pace.”
The NBP governor said that there was no need for further rate hikes when inflation was falling.
“Keeping the reference interest rate at 6.75% continues to affect the economy and will continue to do so in the coming quarters,” said Glapinski. “It would be irresponsible to push for further increases in interest rates when inflation is falling. It would lead to economic turmoil and a deepening of the recession.”
Glapinski said that in May – for the first time “in a long time” – prices did not change compared to April, adding that in May core inflation dropped for a second time, although it was the first time it had fallen “so clearly”.
The core inflation dropped to 12.2% in April from 12.3% in March.
The Consumer price index (CPI) increased by 13% YoY in May on no monthly change after a 14.7% annual increase in April. (PAP/Business World Magazine)
