15.2 percent – that’s how much it was in March this year. inflation in Poland (year-on-year) according to the latest Eurostat data. This is a decrease from February, when inflation reached 17.2 percent. However, this decrease resulted – both in Poland and in the entire EU (more on this later) – mainly from the so-called base effect. The point is that the annual inflation rate for March this year. no longer took into account drastic increases in fuel prices after Russia’s full-scale invasion of Ukraine (because it was over a year ago).
However, inflationary pressures still look worrisome. According to Eurostat data, for a month (i.e. from February to March) prices in Poland increased by 1.1 percent. They went up more strongly only in Greece, Portugal, Malta and Cyprus.
Eurostat data differ from the calculations of the Central Statistical Office, because both offices have slightly different baskets of goods and services that they analyze. The Eurostat methodology has the advantage that it is the same for all EU countries, so it allows you to compare inflation between them. However, it is worth remembering that each country has its own specificity and inflation depends there, for example, on the strength of the currency, political decisions (e.g. anti-inflation shields) or energy mix.
Inflation is falling almost everywhere, Hungary is the clear leader
Similarly to Poland, according to Eurostat, inflation also dropped significantly in the euro area (from 8.5% in February to 6.9% in March), in the entire European Union (from 9.9% to 8.3%) and in the European Union (from 9.9% to 8.3%). and almost all EU countries (increases were recorded only in Slovenia and Malta).
Hungary has been the EU inflation leader since November 2022. There, in March, inflation reached 25.6 percent. year on year and was clearly higher than in other countries (Latvia 17.2%, Czech Republic 16.5%, Estonia 15.6%). Right behind these countries, however, is Poland, which together with Lithuania holds – with a reading of 15.2 percent. – fifth place on the EU list of countries with the highest inflation. It is worth noting that over the last year, Poland was slightly lower than the fifth place in the EU, it returned to the position a month ago.
The lowest inflation in February in the EU was recorded in Luxembourg (2.9%) and Spain (3.1%).
Inflation is falling year on year, but it is still high
Month to month, ie compared to February this year, inflation in the EU and the euro zone amounted to 0.9 percent. This shows that inflation may be falling year on year for statistical reasons, but here and now prices are still rising very clearly. Suffice it to say that the European Central Bank’s target for inflation in the euro area is 2%. per year.
Inflation in Europe – similarly as in Poland – is to fall, but gradually. The ECB projections indicate that in the euro area, inflation in 2023 will amount to an annual average of 5.3 percent, in 2024 – 2.9 percent, and in 2025 – 2.1 percent.
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Source: Gazeta
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