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Inflation To Decelerate to 8.3% in February

POLAND
  • Poland wants the European Union to unblock the funds from its post-pandemic stimulus package as the country “will need millions of euros” to help and integrate refugees coming from war-torn Ukraine, Deputy Foreign Minister Pawel Jablonski tells Bloomberg TV at Medyka border crossing (BBG).
  • This morning, February inflation is coming out (9am London time) and is expected to decelerate to 8.3% YoY on the back of temporary VAT tax cuts (down from 9.2% the previous month).
  • As a reminder, the NBP reviewed its inflation forecast to the upside; av. annual inflation is now expected to run at 10.8% in 2022 and 9.0% in 2023 before easing more visibly to 4.2% in 2024 according to the NBP.
  • This morning, policymaker Sura said that the ‘sharp’ tightening should not cool the economy too much and added that the PLN would gain if EU funds were unlocked.

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