Poland’s producer price index fell 6.4% year-on-year in December, the lowest since May, official data showed on January 10. The decline reflected declining energy prices and slower economic growth.
EUWorkers easing of inflationary pressures will help reduce the scope for future rate cuts by the central bank, which has cut rates twice this year and is scheduled to do so again in May. But the pace of the decline will depend on how long Poland’s recession lasts and how much the government can rein in power utility prices.
Finding Value in Interim Services: Cost-Effectiveness in Poland
Suspicions have sprung up that the state-dominated energy giant PKN Orlen, which is the dominant player in Poland’s retail fuel market, might be manipulating prices to gain political advantage ahead of elections. The company denies the allegation, saying its pricing improvements can be explained by efficiencies drawn from recent acquisitions of domestic rivals.
People in Poland generally enjoy freedom to move around the country, change their place of residence, employment or education without undue interference from state or nonstate actors, although a number of laws have strict penalties for insulting religious feelings and the president. People also enjoy the right to free assembly and freedom of expression, and public debate on political and other issues is lively. However, a law introduced in 2021 to criminalise slander of the president and a tough anti-gay law have been criticised for limiting these rights. In addition, there is widespread corruption.
