🤯 Have you seen our AI stock pickers’ 2024 results? 84.62%! Grab November’s list now.Pick Stocks with AI

Citi sees Poland inflation hitting 4.4-5.1% by the end of 2024

Published 04/17/2024, 06:03 AM
WIG20
-

On Tuesday, the Polish government disclosed initial details about the anticipated energy price hikes. Starting in July, electricity prices are set to increase by 24%, reaching 500 Polish Zloty (PLN) per megawatt-hour (MWh), up from the current capped rate of PLN 412. This rise is notably lower than the 60% surge that would have occurred had prices been allowed to escalate to market levels without government intervention.

The government's announcement helps to clarify the potential future inflation rates, although the final impact on household expenses remains uncertain due to unknown distribution fees. These additional costs are expected to be determined and announced between May and June. The potential consumer price index (CPI) impact varies depending on how these distribution fees will be adjusted.

Before this announcement, the National Bank of Poland (NBP) had estimated that inflation could range between 3.8% and 7.8% by the end of 2024. The new data suggest a narrower inflation forecast, with the CPI expected to be between 4.4% and 5.1% in December 2024. The updated forecast is still sufficiently high to maintain a hawkish stance by the Monetary Policy Council (MPC) in the upcoming months.

Citi analysts anticipate that the interest rates in Poland will remain steady at 5.75% throughout the year, in light of the government's recent announcement and its implications for inflation. This projection hinges on the assumption that the MPC will continue its efforts to manage inflationary pressures without further rate adjustments.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.