Balcerowicz hints NBP to publish inflation data, urges gov’t labor reform

National Bank of Poland (NBP) president Leszek Balcerowicz said on Tuesday NBP may may begin publishing basic inflation data, which he considers a better measure of inflationary pressure than the Consumer Price Index (CPI). According to him, NBP has several methods for calculating core inflation, most of which showed it dropping less over the last six months than the CPI, which fell from 11.6% last July to 8.5% in December. Additionally, Balcerowicz addressed the issue of interest rate cuts, asserting that thrifty public finances and labor reform are prerequisites. “We need a policy mix which will steer towards balancing public finances to free monetary policy from the burden of being the main force stabilizing the economy.”He likewise called for quicker action from the trade union-supported government to loosen the labor market in the struggle against unemployment, currently at 15%. “Structural reforms, especially removing the restrictions of the labor market, are key. Deregulation would allow the growing number of potential workers to become an asset for Poland and not a source of social tensions,”he commented. (Reuters).