Annual inflation to slightly exceed 14 pct in 2022 says central bank

Leszek Szymański/PAP

The 2022 annual inflation rate in Poland will come to 14.2 percent, will fall to 12.3 percent in 2023, and to 4.1 percent in 2024, according to a new central bank report.

"Inflation will reach its peak in the first quarter of 2023 when it will grow to 18.8 percent," the National Bank of Poland (NBP) wrote in the inflation projection report, which was released on Tuesday.

Core inflation, excluding the prices of food and energy, is expected to reach 8.9 percent in 2022. Next year, it will fall to 7.5 percent, and to 4.2 percent in 2024, the NBP said.

"The information and data we received after the March projection had already caused us to increase our inflation forecast for the years 2022 and 2023 but did not change the forecast regarding 2024," the central bank wrote.

According to the NBP, Poland's future economic situation and inflation projection depend, to a large extent, on the extent of the turbulence affecting the global economy caused by Russia's attack on Ukraine.

The central bank also said that the war had significantly decreased agricultural produce supply on world markets, and, as a result, increased inflation forecasts for food prices.