20:43 15 September 2025
Economists: Higher salaries are driving up prices
Poland’s inflation fell to 2.9% in August 2025, nearing the central bank’s target, mainly due to falling goods prices (down 0.3% m/m). However, service prices rose 0.7% and remain 6% higher y/y, driven by strong wage growth and shifting consumer habits toward more services. Core inflation likely fell to 3.1–3.2%, the lowest since the pandemic, strengthening the case for interest rate cuts. Economists note that services are labor-intensive, so past rapid increases in the minimum wage and persistent labor shortages keep pushing service prices up.
Rising wages (7.6% y/y in July) and growing demand for services mean prices will likely keep increasing—more slowly—but won’t decline in the near term.
(pb.pl)
