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English Section

Poland to extend anti-inflation measures after Russia’s invasion of Ukraine

12.03.2022 12:30
The Polish prime minister on Saturday announced that the government would prolong its anti-inflation policies to mitigate the economic and financial fallout of Russia’s attack on Ukraine.
Polands Prime Minister Mateusz Morawiecki.
Poland's Prime Minister Mateusz Morawiecki.PAP/Radek Pietruszka

Mateusz Morawiecki told reporters: “The anti-inflation shield will be prolonged, because the fight against [Russian President Vladimir] Putin has its costs,” the businessinsider.com.pl website reported.

The PM noted that the Russian invasion of Ukraine was pushing the prices of fuel as well as gas and other natural resources higher. 

On February 1, Poland cut value-added tax (VAT) on fuels from 23 percent to 8 percent, and it also slashed the tax on food from 5 percent to 0 percent and on gas and fertilisers to 0 percent, in an effort to curb inflation. 

These measures were to remain in force for 6 months.      

Morawiecki on Saturday also said the cabinet was drawing up an “anti-Putin shield,” a package of policies to support those economic sectors that were hit the hardest by Russia’s attack on Ukraine. 

It comes after Poland’s central bank (NBP) on Friday predicted that inflation would reach 10.8 percent at the end of 2022, businessinsider.com.pl reported.  

Saturday is day seventeen of the Russian invasion of Ukraine, which began on February 24.


Source: PAP, businessinsider.com.pl