As shown by most recent GUS estimations, in April the prices of consumer goods and services dropped by 1.1 percent year to year. – Deflation surprises yet again with its continuously increasing year to year scope. Although its imminent end has been announced several times in recent months, it has recently deepened further rather than receded. Not only the prices of food and energy, which are in fact slowly starting to increase, but also other kinds of consumer goods and services are contributing to lower prices, as evidenced by recent negative values of base inflation – comments Łukasz Kozłowski, expert of Employers of Poland.
Long-term effects of chronic deflation may convince the Monetary Policy Council to cut interest rates, although thus far, lower prices have not had a particularly negative impact on the condition of Polish economy.
Łukasz Kozłowski, expert of Employers of Poland