Businesses in Poland predict price
increases

Contact

Inflationary pressure in the Polish economy is on the rise. More and more businesses are seriously considering putting up the prices of their products – a Grant Thornton study suggests.

In recent years, consumer price dynamics in Poland have hit record lows. Despite economic recovery, inflation remains near historic lows, dropping as far down as 1.3 per cent in March 2018. There are some indications, however, that inflationary pressure in Poland is on the rise and price dynamics may take an upswing in the coming quarters.

According to a Grant Thornton survey of medium-sized and large businesses, the percentage of enterprises planning to increase the prices of their products in the next 12 months has gone up to 44 per cent in Q1 2018. This does not bode well for inflation in Poland, because our findings to date have predicted the price dynamics in the Polish economy quite accurately.

“Opinions of the business community brought to light by the Grant Thornton study are confirmed by the macroeconomic phenomena observed recently. Accelerated GDP growth in Poland and continuing upward trends in employment and remuneration in the majority of business sectors of our economy give rise to expectations of higher inflation. We have to bear in mind that these factors usually take three to four quarters to be reflected in inflation” – Mariusz Maik, Partner, Business Consulting, Grant Thornton.