
Without shields, it’s the cooler inflation that will prove temporary
In Poland, the MPC will stick to its cautious approach and refrain from monetary easing this year: CPI inflation will start climbing again.
In Poland, the MPC will stick to its cautious approach and refrain from monetary easing this year: CPI inflation will start climbing again.
Latvia’s economy is projected to be sluggish: labour costs present risks to growth and competitiveness, while fuelling inflation.
Additional problems arise when the state softens the recession, widening the budget deficit with additional money into the economy.
Lithuania’s optimism assumes a rapidly increasing household real income: will wages keep rising faster than prices with no consequences?
Estonia should build on the competitive advantages of an efficient business environment and wide digital experience to escape stagflation.
Despite the wage gains in the region and retail sales up to 3%, Polish households remain cautious when making purchasing decisions.
In a deteriorating context, NBP faces the pro-inflationary impact of fiscal easing, regulatory decisions, and the uncertain economic outlook.
Market expectations of rapid disinflation remain, but underlying risks come from commodity costs, monetary supply, and trade protectionism.
The core inflation is persistently higher than headline, while expansionary fiscal policy increases the pressure and weaken the competitiveness.
The current decline in Estonia’s exports is more a reflection of the weakness in foreign markets and the problems with competitiveness.