inflation will remain elevated, but indexation of 500 plus will not be
– Inflation will remain at an elevated level. Will it be higher (than 17.2 percent year on year – ed.), Perhaps yes. The beginning of the year is usually a turning point, when some price increases may occur, so perhaps this inflation will increase slightly. However, raising interest rates and the actions of the National Bank of Poland also work. So maybe the beginning of the year will still be elevated inflation – probably most of next year, while the end of the year these effects should be visible and we should come down with inflation – Rzeczkowska said.
In September 2022, inflation in Poland accelerated to 17.2 percent. Every year from 16.1% in August. Additionally, the core inflation index, which does not take into account the prices of energy, fuel and food (they are mainly determined in foreign markets), jumped to 10.7%. from 9.9 percent in August.
The latest October data on the price index will be released by the Central Statistical Office on Monday, October 31. The market initially forecasts that the main CPI may have increased to 18% this month. Every year.
The Minister of Finance was also asked if there are any plans to index the 500 plus program. Recently, there were even comments from the ruling camp that the amount could increase to PLN 800.
– Absolutely not. There is no such space, no such plans. We have other challenges at the moment – energy challenges, we raised it very much to 3%. GDP defense spending. There are priorities here. Defense, energy security, financial security of Poles – said the Minister of Finance in an interview with Radio Zet.
– I will fight to keep Polish finances stable. We will propose solutions that are safe for Polish finances, added Rzeczkowska.
See also: The government’s actions make the fight against inflation difficult and delay the prospect of interest rate cuts
The 500 plus program has not been valorized since its inception, i.e. for over six years. The drop in purchasing power due to inflation is considerable: PLN 500 from 7 years ago is now worth around PLN 370. Before the summer holidays, government spokesman Piotr Muller did not rule out the possibility of modifying the 500 plus benefit in the future, but stressed that no decision had been made in this regard. – You are thinking about some valorization, but I can’t promise anyone anything at the moment – PiS president Jarosław Kaczyński in Częstochowa said a few days ago during a meeting with voters. In this text, we write about whether there is a possibility and how much would valorization of 500 plus cost.
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