Inflation in Poland – Prices Rise Fastest

The slight increase in inflation in June was primarily due to higher prices for items such as housing and alcoholic beverages. However, there is one category that saw impressive declines compared to last year.

The Central Statistical Office (GUS) released its final data on consumer inflation for June on Tuesday. It reached 4.1% year-on-year, consistent with the preliminary forecast released at the end of the previous month.”  Prices of consumer goods and services in June 2025 increased by 4.1% compared to the same month last year (price index 104.1), ” the GUS reported. Let us recall that in May, consumer inflation was 4% year-on-year.

Detailed data indicates that, compared to June 2024, the largest price increases were in the categories of housing and energy (up 10.5%), followed by education and alcoholic beverages and tobacco (up 8% and 6.7%, respectively). Prices in the restaurant and hotel categories increased by 6%. Food and non-alcoholic beverage prices increased by 4.9% annually.

Compared to the same month of the previous year, higher prices, among others, in the following areas: housing (by 8.2%), food (by 4.8%), alcoholic beverages and tobacco products (by 6.7%), restaurants and hotels (by 6.0%), health (by 4.6%) and recreation and culture (by 3.3%) influenced the increase in the total index by 1.97 percentage points, 1.15 percentage points, 0.35 percentage points, 0.34 percentage points, 0.27 percentage points and 0.23 percentage points, respectively – we read in a press release from the Central Statistical Office.

Compared to the same period last year, there was an impressive price decline in transportation. According to data from the Central Statistical Office (GUS), the decline was 6 percent. The clothing and footwear category also saw a 1.5 percent reduction.  Lower prices in transportation (by 6.0 percent) and clothing and footwear (by 1.5 percent) reduced the index by 0.67 percentage points and 0.06 percentage points, respectively, the GUS calculates.

Investment Outlook and Business Perspective

Poland remains one of the most attractive investment destinations in the European Union. With GDP exceeding EUR 650 billion, Poland is the sixth largest economy in the EU and the largest in Central and Eastern Europe. The country has maintained positive economic growth for over three decades, including through multiple global crises.

Foreign direct investment in Poland continues to grow, driven by the country’s strategic location, skilled workforce, EU membership, competitive costs, and improving infrastructure. Key sectors attracting investment include manufacturing, technology, business services, logistics, and financial services.

For investors considering entry into the Polish market, proper structuring of the investment vehicle is crucial. The choice between a sp. z o.o. (LLC), S.A. (joint-stock company), branch office, or joint venture depends on the investment size, sector, tax considerations, and long-term strategic objectives. Professional advisory can help optimize the structure from both operational and tax perspectives.

If you are doing business in Poland or considering entering the Polish market, Zalewski Consulting can help. Learn more about our Polish property market advisory, or contact us for a free consultation.