- A decrease in consumer prices, as well as a certain weakening of GDP growth and the deterioration of many important macroeconomic indicators has not so far led to freezing salary increases. It's an optimistic sign indicating that companies are still doing fairly well in a slightly more difficult conditions or that they treat current problems as temporary - Łukasz Kozlowski, expert of the Employers of Poland comments on the latest CSO data.
CSO announced that in August the average salary in companies increased by 3.7 percent year to year, reaching the level of 3893 PLN. This result is slightly weaker than the forecasts of analysts who had expected 3.8 percent growth per annum. In the previous month salary growth was at the level of 3.5 percent year to year.
Salary growth accelerates - taking into account the deepening deflation, the real incomes of working Poles are growing relatively quickly. Domestic demand is in no danger. This suggests that private consumption will drive the economic recovery in future periods - or, in the event of serious economic problems of the euro zone or the exacerbation of the situation in the East - at least help sustain the present dynamics of gross domestic product.
We know the latest data on core inflation in August. As reported by the National Bank of Poland (NBP) inflation excluding food and energy prices was 0.5 percent year to year. This is 0.1 percentage point more than forecasts and data for July indicated. This shows the nature of deflation in Poland - falling prices are largely the result of external factors, independent of Polish monetary authorities. Probably that is why the Monetary Policy Council abstained from reducing interest rates in September. Unless deflation persists for too long and the core inflation rate falls below zero, it should not cause major damage to the Polish economy.
Łukasz Kozlowski, expert of the Employers of Poland