Inflation may start going down in Q2, 2023 says PM

Paweł Supernak/PAP

Poland's record-high inflation may start to drop in the second quarter of 2023, according to Mateusz Morawiecki, the prime minister.

Poland saw the prices of consumer goods and services (Consumer Price Index, CPI) soar to 17.9 percent year on year, and by 1.8 percent month on month in October 2022, the Central Statistical Office reported. The CPI is now at its highest level since 1997. 

"We can already see the light at the end of the tunnel, and according to many analysts and experts inflation has a chance to enter into a strong downward trend from the middle of the second quarter of next year," Morawiecki said.

Despite rising inflation, the Polish central bank broke off its rate-hiking cycle in September, leaving the reference rate at 6.75 percent. The bank's rate-setting body argues external inflation pressures will ease and the Polish economy will cool down in 2023, which will help bring down inflation without having a detrimental effect on the job market.