Poland’s Central Statistical Office (GUS) is out with the latest inflation data, and it shows that consumer prices rose 3 percent year-over-year in March. This marks an eight-month high but a vast improvement from the double-digit rates in 2023.

“Prices of consumer goods and services in March 2026 increased by 3.0% compared to the same month of the previous year (with prices of services increasing by 5.0% and goods by 2.2%). Compared to the previous month, prices of goods and services increased by 1.1% (including goods by 1.4% and services by 0.2%),” the GUS press release reads, as cited by Do Rzezcy.

The data is in line with expectations.

More layoffs in Poland as inflation, drop in orders hits one leading regional employer

Meanwhile, Finance Minister Andrzej Domański has ruled out the possibility of tax cuts. The politician stated that he personally would like to lower taxes, but the enormous spending on defense and the National Health Fund (NFZ) prevents him from doing so.

“I would like taxes in Poland to be lower, but we have massive spending on security and defense, and healthcare spending is increasing by 200 billion złoty (€47 billion) annually (…). Of course, all of this costs money; I’m responsible for the state’s finances. This proposal would mean a loss of approximately 11 billion złoty. That’s twice as much as we spend on, for example, emergency medical services, so I believe tax proposals must be responsible. The thresholds remain unchanged for 2026,” he stated.

Domański also suggested that there will be no room for any changes to the tax system in 2027. “Of course, there will be discussions, but military spending will certainly be high, the situation in the Middle East shows that security must be our priority, so for now the thresholds remain unchanged,” he said.

Poland has faced a tough time due to inflation and a weaker economy, with its unemployment rate climbing to its highest level since 2021 just last month.

Poland’s unemployment climbs to highest level since pandemic

Poland has been highly favored in recent years for its strong growth. However, it has been overtaken by Switzerland in the IMF’s latest ranking of countries by GDP, dropping to 21st place, notes Do Rzezcy. The difference in nominal GDP between the two countries is expected to reach $13 billion, favoring the Swiss, but by 2031, Poland is expected to overtake Switzerland again. By the end of this year, the IMF forecast sees Poland overtaking New Zealand, Israel, Japan, and Spain in terms of GDP per capita.