Inflation is the result of wasteful government policies, says Bohuslav Grabovsky, a former member of the Monetary Policy Council. “Macroeconomic policy makers are to blame,” he told TVN24.
Inflation in February was a record 18.4 percent. - We must remember that inflation at 18.4 is February to February. Last year it was 10 percent, that is, for 2 years in total almost 30 percent. The entire society spent more than 200 billion zł to buy the same set. Those who have savings in banks have lost more than PLN 250 billion, while borrowers have paid back more than PLN 30 billion in interest, Grabowski told TVN24.
Who is responsible for inflation?
The former member of the Monetary Policy Council believes that the creators of the state’s macroeconomic policy are to blame for the rise in inflation to record levels.
- Macroeconomic. Inflation was caused by budget waste. Our interest rates were too low. since 2015 there is too much deficit and too much consumer spending. We had too loose monetary policy,” Grabovsky said.
February inflation. What was the most expensive compared to January?
The high figure for February is the result of a high statistical base a year ago: in February 2022, state anti-inflation shields came into force, so prices for many products fell. Meanwhile, they have risen, so comparing the prices of 2022 and 223 results in a high inflation rate.
“Inflation rose in February from 16.6 to 18.4 percent, which is in line with market forecasts. However, the change is mostly statistical - a year ago, an anti-inflationary shield was introduced, which changed the benchmark for fuel and food prices. We are currently seeing growth in both groups,” explains the Polish Institute of Economics (PIE).
Source: Wprost
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