Poland has experienced its first decline in the Welfare Index in over a year, according to recent data from the Bureau for Investments and Economic Cycles (BIEC). The index, which reflects the economic well-being of Polish citizens, dropped by 0.8 points in May. This is the most significant single-month drop since nearly two years ago, highlighting growing concerns about the country's economic health.

The decline is attributed to several factors, including rising unemployment rates and a decrease in job offers. The Labor Market Index (WRP), which predicts future unemployment trends, increased by almost 1 point in April, suggesting a potential rise in unemployment in the coming months.

Furthermore, inflation remains a pressing issue, despite some recent reductions. The core inflation rate, which excludes volatile items such as food and energy, is expected to remain high, hovering around 4-5 percent throughout the year. This persistent inflationary pressure is compounded by high service prices, driven by rapid wage growth and limited labor supply.​

These economic challenges indicate a period of adjustment for Poland, as the country grapples with balancing inflation control and economic growth. Economists warn that without significant policy interventions, the road to economic stability might be prolonged. The government is urged to address these issues promptly to mitigate the impact on the average Polish citizen​.

(Business Insider)​​