9:31 12 December 2024
Poland inflation eases
Poland has likely passed the peak of its inflation challenge, but wage growth must be managed to avoid fueling future price increases, according to Geoff Gottlieb, IMF Permanent Representative for Central, Eastern, and Southeastern Europe. Speaking at the EKF debate, Gottlieb noted that inflation had declined significantly, though risks remain.
"We are in a critical phase where strong wage growth, driven by past inflation, could spill over into prices," he warned. The IMF's October World Economic Outlook forecasts Poland's inflation at 5.1% year-on-year by the end of 2024, falling to 3.5% by the end of 2025.
Gottlieb also emphasized that interest rate cuts in Poland should hinge on actual inflation declines, not projections, given the challenges of forecasting in an uncertain economic environment. Inflation is expected to average 3.9% in 2024 and 4.5% in 2025.05-ss
