23:32 18 October 2021
The prestigious bank predicts a further rise in inflation and interest rate hikes
Before the end of the year, inflation in Poland will reach 6.5 percent, predicts the prestigious investment bank Goldman Sachs. According to the institution, further interest rate hikes are inevitable at the same time.
As the bank notes in the note to customers, the final inflation reading for September, at 5.9 percent, showed an even greater negative surprise than the preliminary data showed. According to the institution, the increase in prices was driven by the most volatile categories, such as food and energy (these increases will last longer, because increases in official prices will enter into force at the beginning of 2022). However, increases in other categories, which make up the so-called core inflation, were also getting faster and faster.
According to Goldman Sachs, the inflationary impact of car fuel prices will be weaker in the coming months. Inflation will be increasingly driven by increases in electricity, natural gas and food prices. Prices in the remaining, least volatile categories that make up core inflation will also rise.
"The mixed news from the central bank introduces considerable uncertainty about the monetary policy development in the near term," Goldman Sachs economists noted.
