The anti-inflationary shield will not help. “We are reaping the fruit of the neglect of the last few years”

Today’s inflation is unfortunately the fruit of neglect of the last few years – says economist prof. Witold Orłowski. In his opinion, even the anti-inflationary shield prepared by the government will not help. And some of the solutions that are to be included in it, even hurt. – The answer is not to sprinkle people with money so that they do not feel the price increase. This, after all, will drive inflation even more – warns the expert in an interview with Business Insider Polska.

  • From the beginning of November, the government has been announcing the presentation of solutions which it has wrapped in the name of the “anti-inflationary shield” for marketing purposes. So far it is known that it is to consist, among others, on the distribution of energy vouchers to Poles and the planned reduction of excise duty on energy carriers. We should find out more this week
  • According to prof. Witold Orłowski, the government is dealing today with the effects of its long-term policy. – Stimulating consumption without caring for investment was a simple recipe for inflation, which many economists warned about a long time ago – tells Business Insider
  • But the anti-inflationary shield will not solve the problem. What’s more, some solutions, such as energy vouchers, will drive it even more. – Printing more money is not a way to inflate, but only to mitigate its effects – emphasizes prof. Orłowski
  • You can find more such stories on the Onet homepage

6.8 percent – this is the last inflation reading published by the Central Statistical Office. This means more or less that prices in October were on average almost 7 percent. higher than a year ago at the same time.

However, this is only average. There are goods and services that have increased in price much faster. For example, gas for cars. Here prices are more than 53 percent higher. It is not much better with other fuels. Here, for a year, it became more expensive by over a third.

Much faster than average The prices of bread (9.4%), oil (over 10%) and several types of meat are also rising. For example, beef and poultry are 9.1 and 18.8 percent more expensive, respectively. Pork is cheaper.

In addition, the Central Statistical Office recorded over 18 percent an increase in waste collection fees, as well as significant increases in electricity, gas and fuel prices.

The rest of the article below the video

PiS will respond with another shield

PiS noted that all this bothers Poles more and more. And since Poles, so also voters. So much so that inflation expectations among the public are the worst in 25 years.

What’s more, there are many who blame the high prices on the government of Mateusz Morawiecki and the activities of the National Bank of Poland. Few, in turn, see the European Union guilty, which the rulers often try to suggest, e.g. in the context of rising energy prices.

So the rulers decided to start reducing the effects of inflation, because they see that this does not help their survey results, and the price increase – contrary to forecasts – is not so temporary. They resorted to a proven pandemic method – they will build another “shield”.

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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