Poland ranks second in the EU in terms of the rate of price growth, according to Eurostat data. As recently assessed by the economists of the Goldman Sachs bank, high inflation increases the likelihood of interest rate hikes in Poland.
On Wednesday, Eurostat released inflation indicators for EU countries. In Poland, the price dynamics was 4.7% in July, the same as in Hungary. Prices rose faster only in Estonia – by 4.9 percent. According to these data, inflation in the EU accelerated to 2.5% in July. from 2.2 percent in June. A year earlier, right after the shock of the COVID-19 pandemic and the accompanying lockdowns, it was only 0.9 percent.
Due to the methodology, the Eurostat data for Poland differ slightly from the GUS data. The inflation rate calculated by the Central Statistical Office (GUS) reached 5.0% in July, leveling the result from May 2011. The lowest annual rates were recorded in Malta (0.3%), Greece (0.7%) and Italy (1, 0 percent)