Store prices up sharply
18:00
In September, prices in stores were more expensive by an average of 24.1 percent than a year ago, with sugar becoming 100 percent more expensive, according to the latest Retail Price Index. All of the 12 product categories analyzed became more expensive, with only one category recording an increase of less than 10 percent.
According to Dr. Edyta Wojtyla, an economist at the Poznań School of Banking, the dynamics of the price increase are due to several pro-inflationary factors that have overlapped.
"We are mainly dealing with supply-side inflation caused by imbalances in the markets for raw materials and intermediate products. In turn, constraints on the availability of products, increases in wages and tax burdens, and a sharp rise in energy costs all add up to ever-increasing cost inflation," she pointed out.
In addition, the weak zloty exchange rate causes imported inflation, she added. According to the economist, there are two more types of inflation, i.e. monetary inflation, i.e. the creation of unbacked money, and budget inflation, resulting from excessive non-investment spending relative to real income.
