Inflation to drop below 10 pct within six months says state fund head

Inflation in Poland will fall below 10 percent within six months, the head of the state-run Polish Development Fund (PFR) has said.

In December, Poland's inflation reached 16.6 percent year on year, the country's statistical office reported. Inflation for the whole past year hit 14.4 percent, the highest level since 1997.

Speaking at a regional conference in Warsaw on Monday, Pawel Borys said that "the disinflation trend will be huge; just like we very quickly imported most of the inflation, we're now going to import the disinflation just as quickly."

According to Borys, after the turbulence of 2022 and 2023, the Polish economy has a chance to enjoy a "certain stabilisation in 2024" and may return to a sustainable growth path of 3-4 percent of GDP in the context of a more stable inflation rate.

"Inflation will fall below 10 percent, I think within the next six months," the PFR head said, adding that the Polish economy is currently going through three to four quarters of a slowdown.

"Perhaps just now, at the turn of the first and second quarter, we may see the worst moment in the economy given the combination of high inflation and low growth," he said.