Poland Fiscal Council Urges Inflation Forecast Revision to 2.5% Budget Assumptions
Updated
Updated · Bloomberg · May 12
Poland Fiscal Council Urges Inflation Forecast Revision to 2.5% Budget Assumptions
1 articles · Updated · Bloomberg · May 12
Poland’s Fiscal Council said the Finance Ministry should revise the inflation forecast underpinning budget planning, citing “significant doubts” that current assumptions are realistic.
The watchdog said the ministry has underestimated how the Middle East conflict will hit the economy, especially after oil prices rose following the outbreak of the Iran war.
The ministry said last month it still expected inflation at 2.5% in both 2026 and 2027 despite that energy-price shock.
The challenge is an early test for the newly launched Fiscal Council, which was created to assess the government’s macroeconomic assumptions.
Amidst an oil crisis, why does Poland’s government ignore its watchdog’s inflation warning?
Beyond forecasts, how can Poland's economy escape the cycle of global energy shocks?