Inflation to slow from March next year says think-tank

Poland's inflation rate is expected to slow down in March 2023, the Polish Economic Institute (PIE), a government think-tank, has said commenting on the latest figures from the Central Statistical Office (GUS).

GUS reported on Wednesday that the Polish consumer price index (CPI) increased by 17.4 percent year on year in November on a 0.7-percent monthly increase.

Commenting on the GUS data, PIE expert Jakub Rybacki said that inflation fell from 17.9 percent in October and is much below market forecasts of 18 percent.

In his opinion, December will bring little change in CPI data, but inflation will rise again at the beginning of the new year and peak in February when it is expected to be above 20 percent due to the reinstatement of higher VAT rates for electricity, fuel and gas.

But, he said, "From March, inflation will start to slow down, which will be the result of a drop in oil prices and a lower increase in world food prices."

Rybacki believes that the CPI will exceed 8 percent at the end of 2023.