New shield to temporarily lower inflation, says central bank dep head

Referring to the condition of the Polish economy, Kightley said that investments grew significantly in the two last quarters of 2021. Marcin Obara/PAP

A second anti-inflation shield, presented by the government on Tuesday, will temporarily lower inflation by up to 3.4 percentage points, according to a central bank deputy governor.

"And this year's annual average inflation should be lower by ca. 1.2 percentage points," Marta Kightley told the Sejm's (lower house) public finance, economy and development committee.

According to the government, the new shield is a package of tax cuts that aim to trim consumer price inflation by up to 1.5 percentage points.

Kightley added that, in the medium term, the growth of consumer prices would be limited by the tightening of monetary policy by the central bank.

The government rolled out its first anti-inflation shield at the end of 2021 as the Consumer Price Index (CPI) reached 8.6 percent year on year in December, as reported by Poland's Central Statistical Office.

Referring to the condition of the Polish economy, Kightley said that investments grew significantly in the two last quarters of 2021.

"In the third quarter, this increase reached 9.3 percent, and the fourth quarter will surely see a rise exceeding 11 percent," she added.