Central Statistical Office estimates annual inflation at 8.6%
19:22
Consumer inflation in Poland was 8.6 percent on an annual basis according to preliminary data of the Central Statistical Office (GUS) for December 2021. Food increased at a rate not recorded since the mid-1990s.
The data means an acceleration in price growth. In November, inflation was 7.8 percent.
Detailed data from the Central Statistical Office of Poland shows that in December alone, prices increased by 0.9 percent.
Food prices increased by 2.1 percent (by 8.6 percent compared to December 2020). This is the largest monthly increase in this category since the mid-1990s. Pekao SA economists called it brutal. Also, Grzegorz Maliszewski, chief economist of Bank Millennium, believes that it was the surprisingly high rise in food prices that was the main reason for such a large increase in inflation in December.
According to most experts, the pace of price growth should now slightly slow down, but inflation will remain elevated. Prices should not grow so fast anymore due to, inter alia, the so-called government's anti-inflationary shield. It provides for a reduction in indirect taxes on fuel, gas, and electricity. The government also plans to reduce VAT on food.
Meanwhile, HICP inflation in the euro area amounted to 5.0 percent y/y in December 2021 against 4.9 percent y/y a month earlier, the EU statistical office Eurostat reported, presenting preliminary data.
