Future inflation unknown in opinion of experts
22:23
The prices of consumer goods and services in August 2020 increased by 2.9 percent y/y, and compared to the previous month dropped by 0.1 percent, the Central Statistical Office (GUS) reported in a flash estimate.
In the coming months, while recovering from the pandemic crisis, inflation in the world and in Poland may remain at an elevated level, Eugeniusz Gatnar, the MPC member wrote in the latest issue of the Gazeta Bankowa monthly.
"In the coming months, while emerging from the pandemic crisis, inflation in the world and in Poland, despite the negative output gap and recession, may remain at an elevated level. Monetary authorities must, therefore, carefully monitor price-formation processes in order to keep them under control and prevent fall in the value of money," Gatnar stated.
The economist pointed out that rapidly rising prices of services, especially financial services, were pushing core inflation to levels exceeding 4 percent.
Meanwhile, the analysts of Santander Bank Polska estimated that CPI will continue to decline to below 2.5 percent at the end of 2020 and well below 2percent in 2021.
