The Prices and Inflation in June at the Highest Level in 25 Years

According to the report by the Central Statistical Office, Consumer inflation in June was at its highest level amounting to 15.6%. Compared to the previous month, the prices of consumer goods and services increased by 1.5 %.

“Prices of consumer goods and services according to a quick estimate, in June 2022, compared to the same month last year, increased by 15.6 % and compared to the previous month increased by 1.5 % (price index 101.5)”, the release states.

Why the Inflation is on its Highest Level:

The prices of food and non-alcoholic beverages increased by 14.1%, and energy carriers – increased by 35.3%. Fuels for private means of transport increased by 46.7%.

In monthly terms, the prices of food and non-alcoholic beverages increased by 0.7%, energy carriers increased by 3%, while fuels for private means of transport increased by 9.4%, the report also said. On an annual basis, the market consensus was 15.5 percent.

– In my opinion, inflation will increase a bit. I think the inflation is at the highest level of peak will be around 18 percent – the former Prime Minister stated in an interview with TVN24. According to him, the peak or highest level of inflation will take place after the summer holidays. – I think September – he added.

Belka also pointed to two events that will follow. The first is the inevitable economic slowdown, and the second is the slowdown in commodity prices. – The growth potential of oil and gas prices is slowly being depleted. Gas and crude oil will remain very expensive, but they will not become more expensive – believes Marek Belka.

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 VAT and tax advisory, or contact us for a free consultation.