Inflation in Poland up to 7.7%, and the government wants to suppress it
01:07
Consumer inflation in Poland was 7.7 percent on an annual basis according to preliminary data of the Central Statistical Office (GUS) for November. The data means a strong acceleration of price growth. In October, inflation was 6.8 percent. The November reading is the highest level of price growth since January 2001. Back then, inflation was 7.4 percent.
In just one month, in November alone, prices increased by 1 percent. Fuel prices went up by as much as 2.2 percent. (by 36.6 percent compared to November last year). During the year, energy prices increased by 13.4 percent, and food prices increased by 6.4 percent.
Prime Minister Mateusz Morawiecki presented a package that will counteract rising inflation. It provides for the reduction of the excise tax on fuel and the emission fee to 0 till the end of May. The government also plans to reduce taxes on electricity and natural gas, as well as introduce a protective allowance for households, paid in two installments. Its value is between PLN 400 and PLN 1,150.
The presented package, which consists mainly of tax cuts, costs the budget about PLN 10 billion. At the same time, the prime minister announced that the package was extended to include a 23 percent VAT reduction on heat up to 8 percent.
