Price increases for some products and services amount to double-digit annual results. This translates to a worse financial situation for the Poles. However, experts do not have good news, and inflation is expected to continue to rise. More data provided by the Central Statistical Office (GUS) is alarming.
If the forecasts of economists come true, inflation in Poland will reach a level not seen since January 2001, when it reached 7.4%. The economists wrote: “We estimate that November led to another increase in CPI inflation – to 7.4% y/y. Food price increase accelerated to about 6% y/y, fuel prices increased by about 36% y/y Annual” – Pekao Bank SA in a report on Monday, citing the portal 300gospodarka.pl.
“In our opinion it will be 7.4 per cent, and we are definitely talking about a level above 7 per cent, there is no doubt about that. This is much higher than the central bank’s forecasts for inflation. The path of inflation has increased ”- adds Monica Kortic of Pocztowy Bank in an interview with 300gospodarka.pl.
However, this is not the end of the price hike, and its peak is expected at the beginning of the year, when Inflation may reach 8.5-9%. on an annual basis. The rate hike led to a November rate hike by the Monetary Policy Board.
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Many consider this procedure too late, and experts note that it will have tangible effects only after a few months. Commentators expect the rate to be raised again in December (currently 1.25 percent). In November, the Central Statistical Office released more disturbing data, which will translate into higher prices in the coming months.
Producers, both in industry, agriculture and construction, increased the prices of their products and services significantly in October. Year-on-year industrial production prices rose 11.8 percent in October. (the highest increase since October 1997), agricultural purchase prices by up to 15.6%, and construction and assembly prices by 5.5%.
The government is introducing a shield against inflation
Government response to price hikes, including energy, There must be an anti-inflation shieldWhich will cost the state budget 10 billion PLN.
In the program presented by the government, we can read, among other things, the reduction of the fuel tax to the lowest possible level. Fuel will also be exempt from retail tax for five months. It will also be reduced value added tax (Value added tax) on gas, from 23 to 8 percent. Additionally, the plan assumes 0 percent. Reducing the excise tax on electricity and value added tax from 23 to 5 percent
The basis of the anti-inflation shield is to have cover attachmentAny money that goes directly to those most in need. Some families will be able to receive up to PLN 1150Provided they meet the income criteria. The government also announced cuts in public administration, which are aimed at ensuring savings of up to 5 billion PLN.
Economists expect that the shield against inflation, as well as the increase in the minimum wage and the changes it brings Polish arrangement (Changes in PIT), will lead to an even larger price increase next year. It will be caused by an increase in demand by offering the above solutions.
Prices go up from week to week
“Wholesale rapeseed oil The highest price between October 11, 2020 and October 10, 2021, by about 70 percent. From October 10 to 17, 2021, its price increased by another 17%.Reports -” Rzeczpospolita “, referring to the data of the government’s Integrated Agricultural Market Information System.
Compared to September last year, there have also been double increases in grain prices, which automatically translate into Prices of baked goods in stores. They also went up Dairy products. Between October 10 and 17, butter rose 6%.
The rise in prices of raw materials and services, caused by the unfavorable situation in the world food production market, forces companies to raise prices for their products. “Rzeczpospolita” reports, citing research by Grand Thornton, that 71 percent. Polish companies plan to raise prices for goods and services next year.
Sources: money.pl, Business Insider, 300gospodarka.pl, GUS
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