Rapid salary growth appears to be with us to stay

According to the Central Statistical Office (GUS), salaries increased by 6.1% as compared to February and grew by 9.1% yoy, while market forecasts predicted that the increase will not exceed 3%. Employment increased by 4.5% in March. For Q1 as a whole salaries increased by almost 8% and employment by over 4%. According to Piotr Bujak, an economist with Bank Zachodni WBK, the situation on the labor market is also a surprise for the Monetary Policy Council (RPP). "It will definitely make the Council more cautious and consider about an interest rate increase in April," stated Bujak. He added that the data points to very fast economic growth accelerated by consumption. According to Bartosz Pawlowski, an economist with ING, the fast growth of salaries is now a permanent feature of the economy. "It is a permanent trend. I wouldn't be surprised if also in April salaries would increase by around 8%," stated Pawlowski. "There is no need to worry as long as the inflation rate is low," concluded Pawlowski. (Puls Biznesu, p. 9; Rzeczpospolita, p. B1) E.B.