Inflation in Poland may return to around 3 pct - Monetary Council

"It seems we will return to around 3 percent, or perhaps higher (...) in my opinion, inflation, and the rate will hold in the upper half of the NBP range, and that's why it has to be monitored closely," Eugeniusz Gatnar said. Paweł Supernak/PAP

Poland's inflation rate will hit 3 percent or higher, a member of Poland's Monetary council has reported.

"It seems we will return to around 3 percent, or perhaps higher (...) in my opinion, inflation, and the rate will hold in the upper half of the NBP range, and that's why it has to be monitored closely," Eugeniusz Gatnar said.

Gatnar added that inflation drivers will include a surge in regulated energy prices that can contribute even 0.5 pp to the inflation rate, sugar tax, retail tax, increases in service prices as banks seek sources of income following interest rate cuts.