When adopting the budget act, the Ministry of Finance assumed that GDP growth would amount to 4.6% and the average annual inflation would amount to 3.3%. However, these forecasts may not be up to date.
– 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 – said Morawiecki on Tuesday.
As the Prime Minister said, the average annual inflation rate it may even exceed 7 percent. Therefore, it will be necessary to amend the budget and adjust it to the new forecasts.
See also: The wage and price spiral. Is this the end of salary increases?
The problem is that the Act cannot be amended yet, because has not yet passed the full legislative path.
– It was not even signed by the president, so it is difficult to talk about an amendment to something that has not been adopted – said Morawiecki.
Inflation is rising
Economists expected the reading at 8.3 percent. Even the gloomiest forecasts spoke of inflation of 8.5%, so the price increase surprised them once again.
In addition, the government is proposing to reduce VAT on food. The prime minister appealed to food traders Fr. corresponding reduction in the prices of articles.