Inflation hits those countries where the economic situation is good, said Pekao president Leszek Skiba on Sunday in radio Jedynka. He added that the weakening zloty also had a negative impact on inflation in Poland.
When asked why inflation in Poland is much higher than the EU average, the head of Pekao indicated that it was due to many factors. “Poland is influenced by the exchange rate and good economic conditions, which is a challenge for the economy (…) Inflation hits those countries where the economic situation is good,” he said.
As he explained, as a rule, poorer countries are characterized by a lower level of service prices. “Therefore, the process of countries such as Poland getting richer means that these prices are rising faster than in countries where they are already high. Therefore, under normal conditions, inflation in Poland should be on average higher than in the richest countries” – he stressed. He added that this is also an argument against Poland not joining the euro area, because the interest rate set by the European Central Bank would be too low for us, “he stressed.
“However, we have an emergency in Poland,” he added. As he explained, in addition to all pro-inflationary factors that are visible in Europe and in the world, we also have a phenomenon that contributes to the weakening of the currency, e.g. discussion about KPO, tensions in relations with the European Commission. “This, among other things, means that we have a weak zloty, and a weak zloty means that we have to pay more for products imported from abroad with a weak zloty exchange rate, which is responsible for higher inflation than in other countries”.
According to Skiba, an additional pro-inflationary element is the situation on the labor market. “Poland has very low unemployment, after the pandemic there is a visible demand for workers, and higher and higher salaries are offered,” he said. As he assessed, this is the good inflation element, as opposed to the exchange rate element.
lgs / drag /