Inflation in Poland Declines Gradually, But Remains High at 10.1%

Inflation in Poland continues to fall, marking its sixth consecutive month of decline. However, despite this positive trend, the country is still grappling with a significant inflation rate of 10.1%, far exceeding the European Union’s average. Experts warn that it’s too early to celebrate, as the road to reaching the National Bank of Poland’s (NBP) inflation target of 2.5% remains long and arduous.

Dr. Hab. Aneta Zelek, an economic analyst, expressed her concerns about the persistently high inflation in Poland levels. “There are no great reasons for admiration,” she stated, emphasizing that Poland’s inflation is four times higher than the NBP’s target. “After all, this is inflation about twice as high as the European Union average,” she added.

Details of Inflation in Poland:

The gradual decline in inflation, while a positive sign, does not imply an immediate end to economic challenges. Experts predict that the journey toward disinflation will be an extended one. According to Dr. Zelek, it is highly probable that Poland will reach its inflation target only by the end of 2025, with pessimistic estimates suggesting that high inflation may continue into 2026.

In a preliminary estimate released by the Central Statistical Office, Poland’s Consumer Price Index (CPI) inflation for August stood at 10.1%. This figure, while an improvement from the peak of 18.4% recorded in February of the same year, remains alarmingly high. Detailed data on price changes for various goods and services will be available on August 14, shedding light on the specific factors contributing to this inflation in Poland.

The gradual decrease from February 2022, when inflation reached 18.4%, is a positive sign. However, Poland has not seen inflation within the NBP’s target range since April 2021. The Monetary Policy Council’s target of 2.5% with a tolerance range of 1 percentage point remains elusive.

While Poland’s economy is making strides in curbing inflation in Poland, it remains a complex challenge that will require sustained efforts and patience to bring it back within the desired range. The road ahead is long, and economic stability continues to be a top priority for the nation.

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 personal income tax advisory, or contact us for a free consultation.