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High inflation to continue for 2-3 years: gov’t official

Poles will likely have to endure elevated inflation levels for the coming two to three years, Paweł Borys, head of the Polish Development Fund (PFR) has said.

He added that the central bank’s inflation forecasts had been conservative and had not predicted the rise in inflation. “Inflation will be with us for at least two to three years,” Borys said. “We hope that it will reach its maximum in the third quarter and will start falling next year,” Mr Borys told TVN24, a private TV news channel on Wednesday.


“Inflation was at about five percent until September,” he pointed out. “It seemed to be under control. But it shot up in September when prices of food and gas went up,” the PFR head stated.

He went on to say that for the past two years economists had often been incorrect in their forecasts due to a number of unpredictable events. “However, interest rates must rise a bit more.”

Polish inflation accelerates to a 24-year high as Russia’s war on Ukraine drives prices higher

— Bloomberg Markets (@markets) April 29, 2022

Intrest rates

Poland’s reference interest rate is now at 4.5 percent, but most economists expect the central bank to continue its rate-hike cycle, announcing another increase on Thursday.

According to the PFR head, “the first level where we can try to stabilise the rates is between 5.5 percent and six percent.”

“If it turns out that inflation keeps rising, we will have to approach seven percent,” he said, adding that, in the latter scenario, inflation was likely to peak at 13-14 percent.

Poland’s inflation rate reached 12.3 percent year on year in April.

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