Polish Finance Ministry: Robust Demand May Keep CPI High in 2022

Aug. 26, 2021, 4:57 PM

Strong domestic demand stemming from fast recovery may reduce expected slowing of inflation in 2022, Finance Ministry says in draft budget for 2022 published on website.

  • Ministry assumes now consumer prices growing 3.3% in 2022, in line with central bank’s projection
  • While ministry raised its 2021 inflation forecast to 4.3% due to supply pressures and rise of energy prices after pandemic, it expects such factors to lose steam next year
  • Assumes MPC will start raising official interest rates in beginning of 2022
  • Assumes EUR/PLN rate unchanged at 4.54, which may be “conservative” scenario given strong fundamentals of Polish economy
  • Sees ...

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