Poland faces ‘very big risk’ of y/y deflation - Finance Minister
July 1, 2014
Poland faces a very big risk of annual deflation in the summer months and a high probability of price declines extending beyond the summer holidays, Finance Minister Mateusz Szczurek told reporters on Monday.
"The risk of deflation is very big in annual terms, as we've often had monthly price declines in the summer," Szczurek said. "Everything indicates that deflation may extend beyond the summer vacation. Inflation pressure is very low."
While facing the deflation challenge, Polish budget will draw some support from the structure of GDP growth, Szczurek added.
"Real GDP growth, its structure which which is favorable for taxes, will salvage the budget," he said.