Inflation threatens us now more than war

Stock exchanges recovered losses caused by the Russian aggression in Ukraine, and the exchange rates of the main currencies have recently dropped. According to experts, the first shock caused by the outbreak of the war has been halted.

"At the end of February, the Polish currency weakened on an unprecedented scale, and billions of zlotys evaporated from the stock exchange. Despite the fact that people in Ukraine are still dying, the markets shook off the panic – the zloty is strengthening, and the Warsaw stock exchange is growing," Jakub Balcerzak, Amronet.pl business advisor, said.

But at the same time he emphasized that despite the decline in the dollar and the stabilization of the euro, our native currency ended the quarter in the worst form in 18 years.

"All losses since the beginning of the war have already recovered the most important index of the Warsaw Stock Exchange. The WIG20 from the low recorded on February 24 has already gained about 20 percent. The same is the case on the stock exchanges in Germany and France. In turn, in the USA, shares are valued at the highest level since mid-January," Jakub Balcerzak said.

In his opinion, further development of the situation depends on international "silent" support for Russia, for example by China, or the deepening of sanctions imposed on Putin's regime by the US and the European Union.

Inflation is currently the most pressing problem. It will result in a significant increase in the prices of food products. Bread may soon become 20 percent more expensive, and this is not the end anyway. A good indicator is the FAO Food Price Index, which hit a record high last month.

(WBJ)