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.
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When asked why in Poland inflation is much higher than the EU average, boss Pekao bank he pointed out that this is due to many factors. – Poland is under the influence of the exchange rate and good economic situation, which is a challenge for the economy. Inflation hits those countries where there is good economic climate, he said.
As you get richer, so do the prices of services
As he explained, as a rule, poorer countries are characterized by a lower level of service prices. – Therefore, the process of becoming richer in countries such as Poland 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 was also an argument against Poland not joining the euro area, because the interest rate is determined by European Central Bank would be too low for us.
Influence of Eurocrats
– However, we have an emergency situation in Poland – added the president of the bank Pekao. 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 European Commission. – This includes causes 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 – he explained.
Very low unemployment
According to Skiba, an additional element pro-inflationary this the situation on the labor market. Poland has a lot low unemploymentFollowing the pandemic, demand for workers is evident, with ever higher salaries being offered, it said. As he assessed, this is the good inflation element, as opposed to the exchange rate element.
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#prices of services
# president of the pekao bank