Inflation in Poland Accelerates to 4.3% in August 2024

In August 2024, inflation in Poland increased to 4.3% year-on-year, with notable price rises in energy, water, and education services. This data, released by the Central Statistical Office (CSO), highlights the ongoing pressure on consumer wallets as the prices of goods and services continue to climb.

According to the CSO, services saw the highest price growth, rising by 6.2% year-on-year, while goods increased by 3.6%. These figures slightly exceeded expert predictions, as many had expected inflation to remain at July’s 4.2%. The 0.1 percentage point increase in the Consumer Price Index (CPI) was driven primarily by the energy sector, where prices surged by 10.4% compared to the previous year.

Water and sewage services also experienced significant hikes, increasing by 12.6% and 11.9%, respectively. Educational services became more expensive as well, up by 9%, with restaurants and hotels following close behind, showing a 7.5% rise compared to August 2023.

In the food and beverage sector, prices climbed 4.1% year-on-year, though they dropped slightly by 0.1% from July. Meanwhile, alcohol and tobacco products saw a 4.3% year-on-year rise, with a marginal 0.2% monthly increase.

August also saw steep price hikes in essentials like electricity (+18.5%), gas (+16.6%), and butter (+13.6%). Healthcare costs surged, with doctor visits increasing by 9.2% and hospital services by 10.9%. Hairdressing services and insurance costs each rose by over 8%.

With inflation surpassing the National Bank of Poland’s 2.5% target for another month, economists warn that it could reach 5% in the coming quarters before gradually easing in late 2025. Consumers will continue to feel the impact, particularly in housing, recreation, and dining, as inflation keeps putting pressure on household budgets.

Implications for Banking and Business

Developments in the Polish banking sector affect businesses operating in the country in several ways. Access to corporate banking services, credit availability, deposit rates, and payment infrastructure are all critical factors for companies — whether established Polish firms or foreign-owned entities entering the market.

For foreign entrepreneurs setting up operations in Poland, choosing the right banking partner is a strategic decision. Major Polish banks including mBank, ING Bank Śląski, Bank Millennium, PKO BP, and Santander Poland offer varying levels of service for international clients, including English-language online banking, multicurrency accounts, and dedicated relationship managers for corporate clients.

The Polish banking market is well-regulated by the KNF (Financial Supervision Authority) and participates in the EU deposit guarantee scheme (BFG — Bank Guarantee Fund), providing deposit protection up to EUR 100,000 per depositor per institution. This regulatory framework provides stability and confidence for businesses maintaining corporate funds in Polish banks.

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