Central bank sees Poland's CPI at 10.8 pct in 2022

Paweł Pawłowski/PAP

According to the latest projection by the National Bank of Poland (NBP), the consumer price index (CPI) will jump to 10.8 percent in 2022.

According to the latest NBP’s projection figures issued on Friday, Poland's CPI will ease slightly to 9 percent in 2023 and will decline to 4.2 percent in 2024.

The country's GDP growth will remain strong at 4.2 percent in 2022 and will slow down to 3.0 percent in 2023 and 2.7 percent in 2024.

Core inflation, which excludes the prices of the most volatile goods such as food and energy, will reach 7.0 percent in 2022 and will decline to 5.6 percent in 2023 and 4.2 percent in 2024, the central bank said.

The projection is based on an assumption that the interest rates will not change over the forecast horizon.

Still, the inflation would be 2.1 percent higher on average in 2022 were it not for the government's emergency measures, the so-called anti-inflation shields that have lowered taxes on some goods, including energy and food, the NBP said.

"The cost of the new laws for public finance is estimated at PLN 30 billion (EUR 6.27 billion), or 1.1 percent of the GDP," the NBP said.