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The Polish Prime Minister announced this Saturday, March 12 the extension of the temporary measures put in place at the end of November in order to fight once morest high inflation will be extended and the creation of an “anti-Putin shield”, intended to support the sectors of the economy affected by the war in Ukraine.
Inflation is at record levels in Europe, but Poland’s economic situation is worse than that of its European neighbours. Warsaw has been facing high inflation since the end of last year. In January, before the Ukrainian conflict, the country recorded a rate of 9.2%, unheard of for 20 years. Last Monday, the zloty brushed the symbolic threshold of 5 zlotys for one euro, before rising slightly.
To mitigate the effects of this inflation, the Polish government has taken measures. VAT on gas fell from 23% to 8%, then to 0%, those on fuels, heating and fertilizers also fell. Financial aid intended for nearly five million families has been put in place to compensate for the rise in the price of food products.
The war in Ukraine, an aggravating factor
These measures were planned for a period of six months. But the government has decided to extend them until next July, due to inflationary pressure to which must be added the economic repercussions of the invasion of Ukraine by Russia.
« The inflation shield will be extended because the fight once morest Putin comes at a cost : rise in the prices of fuels, gas, and other raw materials, which also has an impact on food. Rising grain prices mean higher food prices said Mateusz Morawiecki during a visit to a Baltic Pipe gas pipeline pumping station in northwestern Poland.
In addition to these anti-inflation measures, the executive announces an “anti-Putin” shield to support the sectors affected by the war in Ukraine, without however giving the total cost.