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Thursday, June 13, 2024

Inflation in Poland. Donut index. “Expensiveness overwhelms us, no peace on the horizon”

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All the problems that cause inflation are concentrated in this donut, said Ignacy Morawski, the chief economist of “Puls Biznesu” in the “Fakty po Faktach” program. The President of the Employers’ Council of the Republic of Poland, Joanna Makowiecka-Gatza, stated that when it comes to inflation “there is no peace on the horizon”.

The Central Statistical Office announced in a Wednesday communiqué that inflation in Poland in January amounted to 17.2 percent on an annual basis. Analysts had expected a 17.6 percent increase in prices. In December, prices rose at a rate of 16.6 percent.

According to estimates by HRE Investments, a donut made according to a traditional recipe, i.e. a donut fried in lard and filled with rose jam, should cost PLN 4.63 this year, which is 31 percent more than in the previous year. more than a year ago.

Donut index

– There are well-known indexes, for example burger or pizza. Today we have the donut index, our native. This inflation, high prices really overwhelms us as people and entrepreneurs as well. Unfortunately, there is no peace on the horizon, said Joanna Makowiecka-Gatza.

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Ignacy Morawski stated that “all the problems that cause inflation are concentrated in this donut.” – Firstly, the production of bakery products is energy-intensive. Secondly, food is becoming more expensive in the world. Now we are over the hill, this trend is slowly turning around, fortunately. However, this peak was last year and these effects are probably still visible – said Morawski.

The economist pointed out that wages are not keeping up with the increase in prices. – In Poland, we have a fairly high nominal increase in salaries, but not in real terms. The real change in wages is the lowest in exactly 30 years. It’s really painful,” he said.

When is the price increase peak?

According to Morawski, “we are now close to the peak of inflation”. “I don’t know if he’ll be closer to 18 per cent or 19 per cent, but we’re close. The key question is how quickly this inflation will decrease. (…) The optimistic scenario would assume that there will be a single-digit growth at the end of the year, he said.

Main photo source: TVN24

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