Poland highest inflation in 20 years

that is those who had any savings - in 2021 44 per cent of Polish households had no savings - it is still better than the year 2013 when about 60 per cent of Polish households had no savings (my family belongs to those who have no savings)

Can you be more specific to what region in comparison ?
The U.E. ? Poland ? Warsaw ?

The average debt in America is over $90,000 !
And now that the tide is going out we are starting to see who has been swimming naked.

So many people here have a high consumer credit burden; this is, as you know, a big issue.

maybe this is why Polish central bank is not too keen on raising the basic interest rate, don't you think

No, except that they're so afraid of losing what votes they have left from the credit-squeezed middle class that they'll act at the expense of those without savings and who are most vulnerable to price rises, don't you think...

Wow! So Poland is not a fascist dictatorship after all.

most of those who had (have) no savings have benefited from social programmes like 500+ and 13th and 14th pension

I understand that the central bank and the Polish government are not really concerned about inflation currently because it increases nominal tax incomes while the nominal spendings remain the same - it may be shortsighted and can backfire in the longer run but cutting on taxes on fuels and electricity means more budget deficit now which doesn't look appealing either - I think the government wants to keep the economy growing even at the expense of higher inflation - growing economy means less unemployment

also let's take into account that the government plans on reducing income taxes for those with low income in the next year already - I don't know how this is going to affect the budget deficit (I think they resigned to the bigger budget deficits by now) - I really don't know how it turns out but inflation really plays into government promises - it looks like the tax cuts for the less well-off will have an impact on spending - it also can mean even more inflation which in short term the government will find beneficial/helpful but in the long run can render running businesses difficult

Maybe you forgot that the cretin Glapiński raised interest rates twice over the past month...

And they're clutching at straws in trying to say it's high elsewhere, since it's not as high as here.


An understatement o say the least...

hush, don't you dare to unmask liberal double thinking :P

by the way, democracy in Poland can well mean just a facade if the ruling party bends to the EU pressure

but... well, Polish is already a facade democracy - only about 20 per cent of the adult population voted for PiS (you have to willfully ignore the fact that about 50 per cent of the population willfully chose to ignore general elections)

I am sooo confused...From the leftist posts, Poland is a democracy ruled by fascists.
OK, guys, which one is it? My head is spinning...


...or the Davos scum.

you have probably missed the fact I posted that interest rate in Russia is on par with the inflation rate (and in Russia even fewer people have any savings than in Poland) - in comparison Polish basic interest is 1.25 per cent - a difference of 1 basic point compared to the US is hardly a huge one

A comparison with Russia is necessarily a weak one. Especially given their poor standard of living, low life expectancy and appalling human rights record despite huge mineral resources. Do you think people here would want to be judged by Russian standards?

And meanwhile, despite Glapiński's fiscal mismanagement, price rises hit the poorest, Like history repeating.

in theory it is a good idea to have interest rates higher than the inflation rate - the thing is most Russians don't have savings - which means Russian central banks only caters to those who have (which means it caters for the rich)


as far as I know Glapiński is responsible for monetary policy not fiscal policy

In practice, it's normal to respond using interest rates.


As you know, terms are broad. Your Russian-style obfuscation and hair-splitting do not work. Nevertheless, good that you admit that PiS' fiscal policies are weak and that Glapinski's monetary policy is spectacularly poor.

"New York-based Global Finance magazine gave Glapiński a rating of C on a scale that runs from A to F. That was the joint-lowest grade awarded among the 16 countries rated in Europe, as well as the European Central Bank (ECB). Only Belarus's Pavel Kallaur and Ukraine's Kyrylo Shevchenko received grades as low as Glapiński."

notesfrompoland.com/2021/11/02/poland-has-europes-joint-worst-central-banker-finds-international-report/

I tried to say that PiS policies are risky (to my understanding and I am not the finance minister) and can backfire badly - but if it all turns out good the tax cuts for the poorest (most pensioners will pay no tax according to the government proposals) can be an election winner for PiS

- also if you think the Polish Deal policies (that include the tax cuts) are populist it was first PSL who proposed the tax free earnings in the range of 30 000 PLN (close to the current government proposal) - looks like PSL is equally as populist as PiS

(I just found that one of Rafał Trzaskowski's points of presidential programme was precisely this: 30 000 PLN tax free for the poorest - seems like the flagship of PO a while back was as populist as PiS - but well PO figures are known to make false promises)

They are, as we can see from the current mess.


There isn't one. That's just a slogan, as you know.

it is a strange experience trying to debate with you jon - I think I will pass for now

This isn't a debating society.


Or fail...

And yes, inflation is nudging 7% here and is expected to rise, it's the worst in the EU, Glapinski is acknowledged as the weakest central bank governor in developed Europe, PiS' economic policies are a disaster and yes it's getting worse. PiS economic mismanagement is sadly key to this.

tradingeconomics.com/country-list/inflation-rate?continent=europe

No jon, you need to accept that FACT that hyperinflation is world wide and not just in Warsaw.
The PiS, that you personally hate, has NOTHING to do with it.

It thinks we're in hyperinflation (we're not by a long way) and it ignores the cold hard stats that Poland has the highest inflation in the EU, largely due to mismanagement by the current regime. It uses terms it doesn't understand about a country it has only read about.

It just wants to argue.

What specifically did PiS do to cause inflation to be higher than elsewhere in Europe?
Pick Country A and compare with Poland, item by item, or are now going to play pawian?

Because you are wrong and I refuse to listen your anti PiS propaganda.


Some people actually believe that.

Feel free.

I will as your Russian-style obfuscation and hair-splitting do not work.

...to explain how PiS mismanaged what. Give me the top three cases of PiS mismanagement.

PiS poliicy contributes to general inflation. Hyper inflation is global, yes, though the PiS policy has accelerated this in Poland. We will be at 8% before the end of the year, and that is considerably higher than anywhere else in the EU and much higher than US.

The taxation proposed in the Polish Deal crushes the middle class and does next to nothing to the very wealthy, while not giving much to the poor. The Polish Deal destroys local municipal tax bases and forces the cutting of services locally. When entrepreneur's are getting killed with taxes, there is less business growth at the grass roots small business level, and this is what kills economies like a slow cancer.

These policies, coupled with the insane global approach to the virus will send many in Poland into financial crisis within 12 months. More business will close under the Polish Deal and less will be opening. Cities will cut services, and people will suffer.

Meanwhile gasoline is still at crazy costs compared to oil, and state profits are filling coffers and pockets of people who have multiple party appointed positions. Interest rates were just raised again, and the government same out and said it had an immediate impact on the zloty. It did, the exchange rate changed by one grosz. And this is something to brag about?

Now the head of the central bank is afraid he will not get a third term. Rightly so because he is inept at his job. The question is does his ineptness cause these bad fiscal policy or does political policy contribute to his ineptness and cause even worse fiscal management?

I am not trying to play stupid the way some posters here have a habit of doing, but what you just described is a copy of PRL and PZPR. Back then, the middle class was crushed, the poor were poor, including WUT graduates like me, and the party apparatchiks had their special stores (sklepy za zoltymi firankami), government cars, and trips to Bulgaria.

Do you think that executing every member of PZPR in 1989 would have been a good move? Seems that nothing much has changed except that Poles lost the enemy to hate. It's a "democracy" now, so who do you hate? The people they elected?

@Novichok
I am not saying there has been change or no change. I am just pointing out the problem at current. The Polish Deal is going to make things very bad if it is not scrapped or changed dramatically. PiS is in charge, if PO were in charge and making these decisions I would say the same things. Party means nothing to me. Policy is what is supposed to set party's apart from each other.

This fiscal policy is an economy killer. Coupled with the potential loss of EU recovery money it will get very bad, for a very long time. It is bad enough to have me thinking of leaving simply so I don't have to watch it happen. As much as I prefer the lifestyle here for the last few years, that lifestyle for many is changing and will continue to change, which will impact everyone eventually.

PolAm - maybe you missed my post about the 30 000 PLN tax free proposal so:

if you think it's populist and damaging (because the government will seek money elsewhere) it was the opposition parties who have proposed it first: 30 000 PLN tax free for those who earn as much (much lower tax free for those who earn more and no tax cuts for those who earn above 120 000 PLN) by Rafał Trzaskowski in the presidential elections of 2020

- similar proposals were made by Kosiniak-Kamysz of PSL also in 2020 -
-
do you think they Trzaskowski and Kamysz are populists or maybe you believe that theirs were just empty promises made to gain votes

@gumishu
The 30,000 tax free deal for poor and retired is acceptable for me. The problem I have is with the additional 32% on anything over 85 K. My reasoning is simple.

PiS and possibly the old leadership as well want traditional families. More children, more women in what they think are traditional roles. Ok. So if an entrepreneur is making 100K or more per year while his wife stays home with the kids, he gets clobbered for being more successful and having the "ideal" family.

Another entrepreneur wants to start another business, but his post tax income doesnt allow for him to invest more without putting his pre tax investment at further risk.

Business growth requires liquidity. The national banks just raised interest rates, making access to credit less likely and it was already less likely for entrepreneurs to begin with. While it wont effect state owned corporations because they have been gouging the consumer during the whole crisis.

I think both sides have no clue what they are doing and saying when it comes to the economy. I think it will take a centrist to get things on track. Tax the rich. Those making more than 250K per year should pay more, and there are enough of them to make a difference. You do not tax the people who are trying to become rich because they wont get there. But once there, they will understand its time to pay.

This is all quite easy to see in demographic studies.