For a few months in 2021, Poland was at the very top of the EU ranking of countries with the highest inflation rates, according to Eurostat. Poland then dropped to second place for four months, but in August 2021 returned to the top, alongside Lithuania and Estonia.
In August, inflation in Poland grew to 5 percent, compared to 4.7 percent in July 2021. Both Lithuania and Estonia recorded the same inflation rates.
Hungary, which used to have the highest inflation rate in the EU, dropped to fourth place in the ranking with a 4.9 percent inflation rate, but still saw an increase compared to the 4.7 percent it had in July.
Hungary had the highest inflation rate between April and June, but the Hungarian central bank began to increase interest rates, which may help stop inflation. The National Bank of Poland is currently delaying such a decision.
Year-to-year inflation rate in the EU countries, August 2021. (Source: Eurostat)
On the other hand, the lowest inflation rates in August were recorded in Malta (0.4 percent) and Greece (1.2 percent). The average level of prices had not decreased in any EU country in August compared to August 2020. Inflation in the eurozone grew to 3 percent from 2.2 percent in June, and in the entire EU, it grew to 3.2 percent from 2.5 percent.
Both Eurostat and Statistics Poland agree that the price growth in August was higher than in July in Poland.
Economists warn that inflation in Poland will soon reach 6 percent and that the current increase will not be the last one Poland experiences. They also state that higher inflation rates may stick with Poland for years.
