Poland's inflation to reach 6.5 pct at end of year, Goldman Sachs says

JUSTIN LANE/PAP/EPA

Inflation in Poland could hit 6.5 percent by the end of the year, according to US bank Goldman Sachs.

The bank said on Monday in a press release that it had decided to revise up its inflation forecast for Poland after the publication of the latest inflation figures by the country's statistical office, which put September's CPI at 5.9 percent.

Rising food and energy prices, along with increases in the price of other commodities, influenced the decision to revise its forecast, Goldman Sachs (GS) said.

"Currently, GS economists expect that inflation in Poland will reach 6.5 percent at the end of the year," the bank wrote.

Poland is also expected to suffer from high inflation next year owing to expected hikes in utility charges and high prices for durable consumer goods, according to the bank.

"In connection with that, GS experts are now forecasting that next year's inflation will reach 4.1 percent on average," the bank said.

The bank also expects that Poland's rate-setting body, the RPP, will raise the interest rates one more time by the end of 2021.

In early October, the RPP increased the reference rate for the first time in one-and-a-half years, raising it to 0.5 percent from the record low level of 0.1 percent.