The new European Commission (EC) forecast regarding consumer inflation cannot please Poles. Apparently, at the end of 2021 in our country prices will rise at a rate of 4.5 percent.
Inflation in 2021
This is terrible news for Poles. The more so that prices would rise three times faster with us than in the entire European Union (assuming that the full forecast will work).
– The economic impact of isolation measures is more serious than we originally expected – assesses the European Commission.
Let the scale of our potential future problems be demonstrated by the fact that inflation is expected to grow in Romania only by around 3% This country took second place in the ranking!
It is only reassuring that this does not mean that we will record such a big jump in January. Inflation is expected to be at 4.5%. only in the fourth quarter of 2021. The prices are to rise as follows:
- 2.5 percent in Q3 2020
- 1.3% in Q4 2020
- 1.0% in Q1 2021
- 2.1 percent in Q2 2021
- 3.6 percent in Q3 2021
- 4.5 percent in Q4 2021
According to the latest EC forecast, inflation in Poland in 2021 will be 3x‼ ️ higher than in the EU! The crisis has only temporarily put the structural problems and inflationary pressures to sleep. pic.twitter.com/rz6M7qFcgE
– Sławomir Dudek (@DudSlaw) July 7, 2020
Inflation began to pose a problem in Poland as early as 2019. Initially, however, it rose slowly, but eventually broke the NBP’s inflation target.
– For households, inflation has the feature of reducing purchasing power of hard-earned money. Over time, we can buy less and less goods and services for the same amount. At the same time, along with higher prices, more indirect tax money goes to the budget, mainly from VAT and excise duties – notes Ireneusz Jabłoński, economist and expert at the Center Adam Smith. He also adds that this is a clear conflict of interest between citizens and government.
The real essence of inflation is often forgotten. And it’s just a hidden tax. We earn less and less without employers, because our money is less and less worth it, in other words: we can buy less and less products for it. It is dangerous because inflation in Poland hits mainly and to the greatest extent food and drink.