Glapiński on inflation: Many thought it was impossible

The President of the National Bank of Poland, Adam Glapiński, met with journalists as part of the monthly summary of the current economic situation in the country.

Inflation is falling

During the meeting, President Adam Glapiński focused strongly on inflation in Poland. He recalled that the increase in prices of goods and services is consistent with what NBP economists predicted.

– In November, the annual inflation rate decreased again and amounted to 6.5%. It was therefore three times lower than the peak in February this year. Over the last nine months, inflation has decreased by almost 12 percentage points. A large part of economists, analysts, and especially economic journalists believed that it was impossible, and the NBP projection predicted it – said president Adam Glapiński.

– Core inflation is also systematically decreasing. According to preliminary estimates, it is already about 5 percentage points lower than at the peak in March this year. This is the inflation that does not take external factors into account when measuring it. After a sharp decline in the previous months, the decline in inflation is now, naturally, slower. This is fully consistent with our previous predictions. NBP forecasts indicate that inflation in Poland will continue to decline in the coming quarters. The NBP projections turned out to be very accurate, and there was a time when they were very strongly attacked and questioned. Inflation will move towards the inflation target and will reach it within two years – also said the president of the National Bank of Poland.

– Zero VAT on food alone, according to our estimates, will change the inflation level by 0.9%. – added President Adam Glapiński, answering the question whether future political decisions may have a significant impact on inflation in the coming months.