Inflation should come down in coming months - FinMin

Finance Minister Tadeusz Koscinski has said he expects Poland's inflation to decelerate in the next few months.

According to the Central Statistical Office, the prices of consumer goods and services increased by 5.4 percent year on year and by 0.2 percent month on month in August 2021.

The 5.4-percent rate is a 20-year high, but the finance minister said he expects it to start reducing soon.

"It seems that inflation will fall in the coming months," Koscinski told Super Express daily on Monday.

He said that with healthy public finances and growing tax revenue, Poland is not under pressure to reduce spending rapidly.

"We are coming out of the recession and it is not yet the time to withhold state support," he said.

Koscinski added that he is glad there is no deflation.

"If we had deflation while recovering from the recession, it would be very dangerous and would risk falling into long-term stagnation," he said.

"Of course, we keep a close eye on the inflation rate," he added.

According to Koscinski, a number of factors have been driving inflation upwards.

He said that people have been spending more money after being confined to their homes during the pandemic, therefore "supply does not necessarily keep pace with demand."

Other factors increasing inflation include global energy prices and disrupted supply chains, he added.