Central bank sees 2023 inflation at 11.9 percent

Rafał Guz/PAP

The average inflation rate in Poland will reach 11.9 percent this year, 5.7 percent in 2024 and 3.5 percent in 2025, the National Bank of Poland has said in a forecast.

"Over the projection horizon, CPI inflation will decline as factors currently boosting its level subside," the NBP said in its March 2023 inflation report published on Friday. "However, under the assumption of unchanged NBP interest rates (including the reference rate at 6.75 percent), CPI inflation will only return to the band of deviations from the NBP inflation target defined as 2.5 percent +/-1 p.p. at the end of the projection horizon."

The NBP also said that the country's GDP will increase by 0.9 percent this year and will grow by 2.1 percent next year and by 3.1 percent in 2025.