Inflation in Poland highest in four years


Inflation in Poland in June amounted to 4.6%, exceeding forecasts by the Ministry of Finance.

The last time a similar jump in prices occurred in Poland was in 2004 when the country joined the European Union. Then, however, the prices increased because of a change in tax regulations. Now the inflation rate is being accelerated by global increases in food and oil prices and economists are concerned with the drought in many parts of the country and the possibility of poor harvests. Economists expect August will see a peak in the inflation rate, when it will exceed 5%. According to some economists, it could rise to 5.4%.

The Gazeta Wyborcza daily writes that inflation is also being caused by Poles themselves. Having more money in their wallets after a period of wage inflation, they agree to pay more for goods and services, and suppliers take advantage of the good economic situation. In June an average salary in the private sector in Poland increased by 12% more than a year ago.

The Monetary Policy Council has increased interest rates 8 eight times since the beginning of 2007. According to analysts and investors the MPC will increase rates again in the autumn and in order to subdue inflation one rise probably won’t be enough. (Polskie Radio)


Czech economic confidence improves in May Analysis

Czech economic confidence improves in May

Ministers in new Orbán gov't sworn in Parliament

Ministers in new Orbán gov't sworn in

Spring’s allergy season - the heat is on Interview

Spring’s allergy season - the heat is on

Airport bus fare could rise to HUF 1,500 City

Airport bus fare could rise to HUF 1,500


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.