High inflation will persist: an expert

Unfortunately, Poland has a chance to win the infamous first place on the podium of countries with the highest inflation. This is the result of higher energy prices, including gas. It is these categories of the components of the price index that are much higher than the average. Due to higher oil prices in the world markets, the fuel has reached very high prices – which also translates into inflation.

“We should remember that inflation was caused by economies coming out of a pandemic collapse. On the one hand, especially during the lockdowns and higher demand, food prices rose – but it can be said that their impact ended in 2020. In recent months there have been higher energy and gas prices. From what can be seen on the world stock exchanges, higher gas prices will ultimately be translated into the consumer inflation index. An important aspect is also the rising prices of raw materials or products in the chemical industry, e.g. fertilizers. The fertilizer manufacturing costs are mainly gas costs, which have now risen sharply. They will translate into higher costs of food production. Probably at the beginning of next year, the impact of higher food prices on the inflation rate will be noticeable,” Grzegorz Sielewicz, chief economist of COFACE, said.

(eNewsroom)