The price increase in stores is becoming increasingly noticeable, and future prospects are not optimistic. Data from fresh months show a consistent price increase that can accelerate in the coming year. Should Polish consumers prepare for the worst period in many years? That's what the experts say.
Growing Price Growth Dynamics
In July 2023 regular purchases were more costly on average by 3.9% compared to the same period the year before. Price index in retail stores study by UCE investigation and University of WSB Merito shows that the dynamics of price increases accelerates from period to month. In April, the increase was inactive 2.4%, in May 2.9%, and in June already 3.1%. These data clearly indicate a continuing upward trend.
Forecasts for the next year – What is waiting for us?
Experts foretell that inflation can scope 5% in December, which will further increase prices in stores. Even more worrying are the forecasts for 2025, erstwhile inflation can scope up to 7-10%. The main drivers of this increase are higher energy, gas, fuel prices and increases in distribution fees and network heat costs.
Dr Sławomir Jankiewicz, Prof. UWSB Merito, warns that we are facing hard times, and external factors specified as the geopolitical situation may further worsen the situation. Possible escalations of conflicts, economical problems in the United States or the deficiency of restructuring in large state-owned enterprises can contribute to further price increases.
Impact of VAT Freezing on Prices
It has been speculated late that VAT frostbite can slow down price increases, but studies show that this effect has only been postponed over time. In the first phase of trade networks have partially taken over the costs of the VAT increase, but are now shifting them to consumers, leading to higher prices in stores. As Dr. Tomasz Kopysciński notes, the competitive conflict between the commercial networks slows down this process, but is incapable to halt it.
What does that mean for consumers?
Data from July 2023 show that on 17 monitored product categories, 11 of them recorded price increases, including 2 on a two-digit scale. Experts foretell that the number of categories with rising prices will increase in the coming months, although these increases will stay single-digit in most cases.
However, rising wages, which in July 2023 increased by almost 11% a year, can give consumers a deceptive sense of improving the financial situation. Shops, seeing the increase in real purchasing opportunities of Poles, will besides effort to benefit from this by raising prices.
Can you avoid rising price?
Unfortunately, everything indicates that the prices in stores will increase. It is crucial to prepare for these changes, e.g. through informed management of the home budget and seeking purchasing opportunities. It is besides worth following developments in the energy and fuel markets, as these costs will have a major impact on the final prices of products.
In summary, Polish consumers must prepare for a hard period of price increase in 2024, which can scope even two-digit levels. We will all feel the consequences of this, so it is worth to start reasoning about optimizing spending.
Continued here:
Prices in stores from 1 January up to 20% more. Experts warn
