The budget for 2022 assumes that the average annual inflation will be 3.3 percent. However, Prime Minister Mateusz Morawiecki admitted on Tuesday that it would be a much higher level. – Average annual inflation rates may exceed 6 percent, maybe they will even oscillate around 7 percent (…), maybe even more – said the head of government.
At a press conference on Tuesday, the head of government was asked about a possible amendment to the budget act for 2022 due to rising inflation. The Ministry of Finance assumed in the budget act for 2022 that the Gross Domestic Product (GDP) of Poland will grow by 4.6% this year, and the average annual inflation will be at the level of 3.3%.
Meanwhile, on Friday, the Central Statistical Office informed that, according to preliminary data, prices of consumer goods and services in December 2021 increased by 8.6 percent. year on year, and compared to the previous month, prices increased by 0.9%.
WATCH TVN24 ON THE INTERNET ON TVN24 GO >>>
Inflation in Poland – Mateusz Morawiecki on forecasts
– The budget was created when the world did not think too much about inflation. A few months ago it was not the number one topic, it was not even the number two topic – replied the head of government. Morawiecki stated that this is why such and no other indicators, including inflation, were adopted in this year’s budget. Final inflation data for December 2021 will be released on Friday, January 14. In turn, preliminary inflation data in January this year. we will know – according to the information on the website of the Central Statistical Office – on February 15.
At the same time, the prime minister pointed out that “today the budget act has not been fully approved in the entire legislative cycle”. – It was not even signed by the president, so it is difficult to talk about an amendment to something that has not been adopted – he noted.
In mid-December last year, the Sejm adopted the budget act for 2022. Now the regulations have passed to the Senate. The Senate Committee on Budget and Public Finance recommended a number of amendments to the law, one of them concerns the inflation rate, which would rise from 3.3 percent. up to 7.6 percent Senate Marshal Tomasz Grodzki informed that the vote on the budget bill would take place on Wednesday.
Prime Minister Morawiecki admitted that in 2022 the average annual inflation may fluctuate around 7%, it may also be higher. – (…) the average annual inflation rates may exceed 6 percent, maybe they will even oscillate around 7 percent (…), maybe even more – said the head of government.
In the prime minister’s opinion, however, “today such an amendment would be premature”. – I don’t expect that in spite of these huge tax cuts some legislative changes in the budget act will be needed in February, March and April – he stated. As he added, the amendment may take place in the second half of the year.
– I believe that the budget, despite these huge cuts, due to its tightness, due to the fact that hundreds of activities are planned at the Ministry of Finance that seal VAT, seal CIT, and seal PIT, it will be in good condition, so somewhere in In the second half of the year, I think it is highly probable that such an amendment may occur, but at the moment there is no such necessity – emphasized Mateusz Morawiecki.
Main photo source: Kamil Zajaczkowski / Shutterstock