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Inflation in February 2023 amounted to 18.4 percent. Boguslaw Grabowski comments

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Bogusław Grabowski, an economist and former member of the Monetary Policy Council, was asked about high inflation and its reasons in “Kropka nad i”. – This inflation was caused by profligate spending of the budget, which went hand in hand with a very pro-spending monetary policy – he noted. Grabowski pointed out that “for the purchase of the same set of goods and services, the entire Polish society spent more than PLN 200 billion more for this reason.”

The Central Statistical Office announced today that inflation in February rose to 18.4 percent year-on-year. The last time inflation crossed the 18 percent mark on an annualized basis was in December 1996, when it was 18.5 percent.

Such a high level of inflation was commented on by Bogusław Grabowski, an economist and former member of the Monetary Policy Council, in the Wednesday edition of “Kropki nad i” on TVN24. – We must remember that inflation 18.4 is February to February, but that year (inflation) was almost ten percent (8.5 percent – ed.), i.e. in total, within two years, from the moment when the inflation target of 2.5 percent was exceeded, it is already almost 30 percent – he pointed out.

>> What has gone up the most? There is a clear growth leader

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What does this level of inflation mean for us? – For the purchase of the same set of goods and services, the entire Polish society spent more than PLN 200 billion more to have the same goods and services. Savers, but only the part of savers who have bank accounts and savings, lost over PLN 250 billion, and borrowers paid PLN 30 billion more in interest, he mentioned.

When asked who is to blame, Grabowski pointed to “the creators of macroeconomic policy” in our country. “This inflation was caused by lavish budget spending, which went hand in hand with a very pro-spending monetary policy,” he said. We were too low interest ratessince 2015, too much deficit and too much spending, which was not focused on supply, but on consumption demand – he added.

Bogusław Grabowski was a guest of Monika OlejnikTVN24

Grabowski: For now, we have a policy that masks inflation

When asked what can be done about high inflation, Grabowski replied that “a policy that lowers inflation must be launched.”

“For now, we have a policy that masks inflation, not lowers it. Many economists said in the fall, and so did I, that inflation would exceed 20 percent. In the conditions we forecasted, it is not 18.4, but over 22 (percent). Because at the time we didn’t know that the government would freeze electricity pricesgas and limits the prices of central heating, and this artificially lowered inflation by about five percentage points – he said.

>> Inflation hits savers. “The situation is quite tragic”

THE ENTIRE INTERVIEW WITH BOGUSŁAW GRABOWSKI IS AVAILABLE ON TVN24 GO:

Main photo source: TVN24



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