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Inflation in Poland. Comments by Edyta Wojtyla and Andrzej Gantner.

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Prices in Poland are rising not only year on year, but month on month. In April, compared to March, the price basket of products and services increased by 0.7 percent, so there can be no question of any inhibition here, noted Dr. Edyta Wojtyla from the WSB Merito University in Poznań in an interview on TVN24 BiS. Andrzej Gantner, general director of the Polish Federation of Food Producers, assessed that “the trade war at the level of retail stores has begun”. – Stores are fighting for customers who have started to save because of the high prices – he said.

The guests of TVN24 BiS were Dr. Edyta Wojtyla from the WSB Merito University in Poznań and Andrzej Gantner, general director of the Polish Federation of Food Producers.

Edyta Wojtyla noted that consumers are economically aware. – We know how much we spend, how much we spent before and how much we have left in the wallet. We buy the same products in stores. If we see that something previously cost 20 percent less, we notice it perfectly. We don’t need a political confirmation, she stressed.

Prices are rising month on month: there can be no question of any slowdown

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The expert added that “today, none of us need to read inflation data, because we know how much we spent on shopping and how much we spend. We have had an increase of over 50 percent for several years” – she said.

– Prices in Poland are rising not only year on year, but month on month. In April, compared to March, the price basket of products and services increased by 0.7 percent, so there can be no question of any slowdown here, she noted.

Andrzej Gantner was asked about the prospects of stopping the price increase – The price increase will stop when the costs of enterprises start to fall – he replied.

– It’s about the costs of energy, raw materials, labor costs, which are not falling, but growing. Then, when companies will feel relieved that all production costs will stop rising. This is the time when they will decide not to raise prices, and even taking into account the falling demand, they may decide to lower them, he said.

He estimated that “if nothing special happens in the coming months, prices will not increase significantly.” – Taking into account the attitude of food producers, it seems that the second half of the year will be a time when prices will not increase significantly month on month. They can even shrink, he pointed out.

He stressed that “the trade war has begun at the level of retail stores.” – Stores are fighting for customers who have started to save because of the high prices. There’s a big drop in demand, 5 percent month-on-month. On a national scale, this is a huge amount of products – he noted, adding that the competition between stores and suppliers will become increasingly fierce.

The market should return to equilibrium

However, Edyta Wojtyla noted that “food prices do not react so quickly”. – As far as the market is concerned, the demand for certain products, for example sugar, oil, meat, butter, will still be there. You can see a decrease in demand for products such as sweets, for example, she explained.

She added that “today we can talk about a certain stabilization of the value of the zloty.” – But we do not know what will happen in two or three months, because we still have an unstable currency market. What currency would remain at the same level as now, I also see a chance to stop the price increase – she said.

Andrzej Gantner, in turn, pointed out in the conversation that we are looking for cheaper substitutes, we save money, we buy less. – A positive trend is not wasting food. Organic products recorded a very strong decline in sales. It turns out that beliefs and financial reality greatly influenced the demand for this product. It seems, however, that the market should return to equilibrium, nothing ever grows indefinitely, he noted.

Inflation in Poland

Inflation in Poland is currently at double-digit levels. Prices of consumer goods and services in April 2023 increased by 14.7 percent year-on-year. The growth leader remains sugar, which it overtook energy prices heating and transport services. There are also products whose prices have fallen year on year.

Inflation in PolandPAP/Maciej Zielinski

According to NBP data, in April 2023, excluding food and energy prices, inflation amounted to 12.2 percent year on year. This is an index of price growth excluding food and energy prices.

Read more: An increasingly lighter basket for 500 plus. How much less will we buy for the benefit?>>>

Main photo source: Warsaw Grand / Shutterstock



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