Tighter fiscal policy needed to curb inflation

Bringing down inflation will require time and a tighter fiscal policy, the Polish Development Fund (PFR) wrote on Tuesday in a commentary on the latest inflation statistics.

On Tuesday, the Central Statistical Office (GUS) reported that prices of consumer goods and services in February had risen by 8.5 percent year on year but were down 0.3 percent from the previous month.

Commenting on the GUS figures, PFR head Pawel Borys said that, in order to curb inflation, more time and a further tightening of fiscal policy would be needed. He added that the February inflation drop was due to the government's introduction of an anti-inflation shield which lowered food and fuel prices.

Borys said the February figures could have been even lower if not for a sharp increase in fuel prices after Russia's invasion of Ukraine.