Poland: Inflation jumps in May
Consumer prices rose 1.70% over the previous month in May, following April’s 2.00% surge.
Inflation came in at 13.9% in May, which was up from April’s 12.4% and marked the highest print since October 1997. Meanwhile, the trend pointed up, with annual average inflation coming in at 8.3% in May (April: 7.5%).
Commenting on the outlook, Rafal Benecki and Adam Antoniak, economists at ING, stated:
“Policymakers in many countries are trying to prevent second-round effects by raising rates and tightening fiscal policy, even at the expense of an economic slowdown. In Poland, central bank tightening comes with fiscal easing (we estimate fiscal expansion at about 3% of GDP in 2022), which makes the policy mix only marginally restrictive. This will sustain strong consumption growth, making the inflation situation even worse.”