Inflation to drop to 8% by end-2023 - Pekao

Economists from Bank Pekao predict that consumer inflation will remain in the double digits for most of the year, but will decrease to around 8% y/y by the end of the year. They also suggest that a convenient time to begin lowering interest rates will appear in the autumn.

The high inflation is being caused by non-core factors such as food, energy, and fuel, but the momentum remains high. The economists also stated that the "sticky" core inflation is sustained by high energy costs and a strong labor market. Meanwhile, the Central Bank is waiting for the right time to begin cutting interest rates, with some predicting that it may happen in the fall.

Source: ISBnews