July inflation higher than analysts forecasts, interest rate hike all but certain

The inflation rate in July was higher than analysts were predicting. The Central Statistical Office (GUS) revealed yesterday that the year-on-year inflation rate was 11.6%, in June it stood at 10.2%. Despite that Grzegorz Wojtowicz representing the Monetary Policy Council (RPP) repeated the RPP' s opinion that the Polish economy should end the year with an inflation rate close to the forecasted 6.8%. Many analysts agree that because of high inflation, the RPP is likely to increase interest rates at its next meeting on Aug. 30, but members of the RPP presented various opinions. GUS also released data on the average salary levels. Employees in July earned 9.2% more than last July with the average monthly salary being zl. 2,035.55. At the same time the employment rate (sic) was 2.8% lower in July over last year, and 0.2% lower than in June. (Prawo i Gospodarka, page 1, 2, Rzeczpospolita page B1, B2)