Inflation expected to drop to 8.3% by end-2023

The Institute for Economic Forecasts and Analyses (IPAG) predicts that consumer inflation in Poland will decline to 8.3% y/y by the end of 2023 and further to 5% by the end of 2024. IPAG has revised its 2023 average inflation forecast to 12.2% from 12.8%.

The institute foresees a gradual slowdown in inflation over the coming months, potentially leading to minor interest rate reductions by the Monetary Policy Council in Q4 2023. Despite lower inflation rates in 2024, they are expected to remain above the National Bank of Poland's target. The Council had previously raised interest rates but maintained them since September 2022.

Source: inwestycje.pl