We usually look at inflation globally, nationwide. However, it is worth looking at the topic in a more detailed way – analyzing price jumps in individual provinces. There may be many surprises …
Inflation in voivodships
During the first quarter of 2020, a very large increase in inflation was observed in Poland. In January, prices jumped by 4.4 percent, in February by 4.7 percent. (this is the highest since November 2011), and in March by 4.6 percent.
This worrying phenomenon was halted only in April (3.4 percent) and May (2.9 percent). Let’s remember, however, that the fall in prices was a result of lockdown. In accordance with the decisions of the authorities, the Poles restricted leaving their homes, so they bought less. They could not, for example, go to shopping malls that were closed. Not to mention closed clubs, discos, cinemas, theaters etc. What will happen next? For now, let’s look at individual provinces.
According to the Central Statistical Office, in the first quarter of this year, the highest prices were recorded in the following provinces: Małopolskie (5.8%), Świętokrzyskie (5.3%) and Warmian-Masurian (5%). The lowest prices were rising in the Dolnośląskie (4 percent) and Lubuskie (3.9 percent) voivodships.
The exact data for the first quarter of 2020 are as follows (y / y):
- Lesser Poland 5.8
- Świętokrzyskie 5.3
- Warmian-Masurian Voivodeship 5
- Kuyavian-Pomeranian Voivodeship 4.9
- Lodz 4.9
- Greater Poland 4.8
- Podlasie 4.8
- Podkarpackie 4.6
- Śląskie 4.5
- West Pomeranian Voivodeship 4.5
- Opolskie 4.4
- Lubelskie 4.4
- Pomeranian 4.1
- Mazowieckie 4.1
- Lower Silesia 4
- Lubuskie 3.9
What next with prices?
Today it is difficult to clearly predict what will happen in the sphere of inflation.
Further detailed inflation data in Poland will not be known until June 15. Then the CSO will present the final report containing the change that has taken place in individual categories of goods and services and selected groups of specific products. In turn, on 17 June we will be able to compare the amount of inflation in Poland and other EU countries. We will know the first inflation reading in June in our country at the end of the month.
In any case, looking at the policy of central banks (crazy reprint and lowering interest rates), you can have concerns about what awaits our savings. Today, a responsible investor should think hard about what exactly to invest his resources to efficiently escape inflation.