According to predictions made by analysts, prices in Poland increased around 2.5 percent in December, dropping to the target set by the Monetary Policy Council (RPP). The last time that happened was back in September 2010, when inflation precisely hit the 2.5 percent level, but then proceeded to increase in the following months reports Parkiet.

This time, though, experts feel this could be a long-term trend. Ignacy Morawski, economist at bank PBP expects that by spring, inflation will fall visibly below the 2 percent mark and will not exceed that level for the remainder of the year. He feels that inflationary pressure has practically disappeared in Poland. Wages are growing at a slower rate than inflation. The experts predict that the average pay rise in 2013 will reach 3 percent.

Unemployment is on the rise, the GDP dynamic is below its potential, and depreciation of the złoty, which might bring price hikes, is very unlikely.

Poland A.M.