BIEC: inflation likely to accelerate in the second half of the year

Inflation will grow slightly slower in the first half of this year, and in the second half of the year, it is likely to pick up again, indicated the Investment and Economic Cycles Bureau (BIEC). According to BIEC, the Future Inflation Index (WPI), which forecasts the direction of changes in the prices of consumer goods and services several months in advance, increased in February this year by 1.4 points to the value from a month ago. The indicator has been growing continuously for 19 months.

"Neither on the demand side nor the supply side, there are any signs of a slowdown in the inflation spiral," the experts assessed.

They pointed out that although consumers feel the price increase so far acutely, fearing a further loss of purchasing power of their income and savings, intend to accelerate decisions about the purchase of durable consumer goods soon. They added that business representatives are struggling with rising costs of doing business and increasing uncertainty related not only to the further course of the pandemic but mainly to the mess resulting from the changes introduced in the tax system. The legal mess is indicated by more than half of the entrepreneurs surveyed by the GUS, and this is the worst result since the beginning of the research.

(PAP)