This year's inflation begins to escape control
22:03
Bank Pekao increased the annual average inflation forecast this year to 12,2 percent from 10,8 percent expected at the beginning of April. According to bank analysts inflation will peak in mid-year close to 14 percent y/y, while the reference rate target is 6,5 percent.
"This year's inflation is beginning to escape control and economists' forecasts are constantly being increased. It is certain, however, that the inflation summit is still ahead of us. We are forecasting an annual average inflation rate of over 12 percent in 2022 with a mid-year peak close to 14 percent, with the exception that the risk is directed toward higher inflation. In the second half of the year inflation pressure should slowly begin to decline, although despite strong monetary policy, a rapid decline in inflation will not be possible due to the simultaneous strong expansionary fiscal policy," the bank noted.
According to Pekao, annual average inflation in 2023 will be at 8,5 percent (against 5,1 percent last year).
