Poland's inflation to remain above central bank target for several years

Poland's Consumer Price Index (CPI) will significantly exceed the central bank's target for the next three years and will likely hit a peak of 15.8 percent, year on year, in August 2022, according to a report published by a leading economic think tank on Tuesday.

"For the next three years, inflation will considerably exceed the 2.5-percent inflation target of the National Bank of Poland (NBP)," Polish Economic Institute (PIE) economists wrote in a paper, adding that, in 2022, average annual inflation will reach 13.2 percent.

In 2023, average annual inflation will fall to 8.6 percent, and in 2024 it will drop to 4.5 percent, PIE said.

According to PIE analysts, the high inflation has been mainly caused by growing food and energy prices, which are responsible for 66 percent of the total increase in prices.

Referring to food price rises, PIE economists wrote that, in their opinion, they would exceed 10 percent in 2022 and 2023.

"We estimate that food prices will grow by 13.5 percent in 2022, and by 11.5 percent in 2023, with grain and meat prices going up at the fastest rate," PIE said.

In May 2022, prices of consumer goods and services increased by 13.9 percent, year on year and by 1.7 percent month on month.

In April, the prices of consumer goods and services increased by 12.4 percent, year on year, and by 2.0 percent month on month.