Inflation exceeds allowable levels: KIG
21:01
A reasonable level of inflation processes is to be ensured primarily by the monetary authorities – the National Bank of Poland (NBP) and the Monetary Policy Council (MPC). Institutions should use all possible instruments, all their possibilities, and all possible ideas to ensure that the price change takes place at the right level – that is, that prices do not rise too quickly. In Poland, the inflation target is 2.5 percent per annum, but it may fluctuate in time – inflation may occur in the range of 1.5-3 percent. Currently, inflation exceeds the upper range of the inflation target of 3.5 percent and is over 4 percent.
"This is clearly above what we should allow," Piotr Soroczyński, chief economist of the Polish Chamber of Commerce (KIG), said.
"One of the basic tools that monetary authorities can use to deal with an elevated level of inflation are interest rates. Other tools and instruments include the possibility of influencing the exchange rate. NBP, keeping the zloty quite low, maintains a high level of inflation," Soroczyński concluded.
