We may face a spiral of price increases
20:23
Inflation in Poland comes from both domestic and global sources. Its high level will continue not only in 2022 but also in 2023. Imported inflation in the form of high prices of oil, gas, energy, or other products imported from Asia falls on the very inflationary soil of the Polish economy - which in recent years was based on the boom in consumption. As a result, high costs are passed on to consumer prices, i.e. the effect of the second round is just easier.
"We are analyzing what it looks like on the side of enterprises and we are afraid that the effects of the so-called second round in Poland are very likely. We are also concerned about a wage-price spiral. Because we have a very strong labor market, high demand for employees, and their strength. the bargaining ground is high, the Shields are just very generous. This is a bit different than what the International Monetary Fund recommends to put your shields on people who can really enter the poverty area. The pre-pandemic consumption boom and very generous shields mean that high inflation will persist for a long time, so in 2023 we see the average inflation in Poland above 6 percent," Rafał Benecki, chief economist of ING Bank Śląski, assessed.
