Goldman Sachs: anti-inflation shields will lower CPI peak, but period of elevated inflation will extend

2022-01-14 15:50

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2022-01-14 15:50

Goldman Sachs: anti-inflation shields will lower CPI peak, but period of elevated inflation will extend
Goldman Sachs: anti-inflation shields will lower CPI peak, but period of elevated inflation will extend
photo: Brendan McDermid / / FORUM

Actions proposed by the government under the so-called anti-inflation shields will lower the CPI peak in Poland by about 3, -3.5 points. percent, but the period of increased inflation will extend, economists at Goldman Sachs forecast.

“We estimate that at the peak the disinflationary impact (anti-inflationary shields – PAP) on the CPI will be close to 3.0-3.5 percentage points. Although the measures will lower the inflation peak, the price index will be more volatile and the increased inflation will extend into the future “Moreover, we expect core inflation to rise,” the report wrote.

On Tuesday, Prime Minister Mateusz Morawiecki announced that the government was planning to cut VAT to 8 percent. for fuel, up to 0 percent for food, up to 0 percent for gas and up to 0 percent. for fertilizers. The government announced that the reductions would apply from February, for six months. The elements of the first anti-inflationary shield were also extended to six months in total.

Goldman Sachs economists forecast that the interest rate in Poland will increase to 3.0 percent in the coming months.

“Although our forecast assumes an increase in interest rates to 3.0% in the coming months, we see a risk for this forecast towards a stronger tightening of the monetary policy” – they wrote. (PAP Biznes)

pat / mfm /

Source:PAP Biznes
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About Eric Wilson

The variety offered by video games never ceases to amaze him. He loves OutRun's drifting as well as the contemplative walks of Dear Esther. Immersing himself in other worlds is an incomparable feeling for him: he understood it by playing for the first time in Shenmue.

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