Galloping inflation is currently perhaps the most important problem facing the Polish economy, and at the same time an increasingly serious difficulty for Polish consumers. Virtually everything is becoming more expensive, starting with food, continuing with rent and apartment rental costs, and ending with fuel and electronic equipment. These are only some of the areas affected by the increasingly noticeable rise in prices.

Unfortunately, the forecasts for the future are not optimistic either. As early as November of the current year, Poland’s inflation rate reached 7.7%, a level not recorded in our country for a long time, thus significantly exceeding the predictions of almost all economists.

What is currently becoming most expensive in Poland, and where is the rise in prices felt most severely? How long will high inflation persist, and what might its maximum level be? Let us take a closer look at this issue and answer the questions indicated above.

Price increases in Poland in 2021 – which sectors are most affected by inflation?

Consumers naturally pay particular attention to rising food prices. This is hardly surprising, since the increases are already truly noticeable both in smaller shops and in supermarkets that had previously been inexpensive.

Two fundamental indicators are used to calculate food price increases. The first is FAO, which is international in scope. In the simplest terms, this index illustrates changes in the prices of agricultural products and basic raw materials used to produce food, such as meat. What does FAO tell us? The increase in prices of individual product categories belonging to the so-called inflation basket was enormous this year:

  • In the case of meat, we recorded a price increase of more than 22 percent compared with last year
  • Grain became almost 23 percent more expensive
  • Oils recorded an increase of almost 74%
  • Sugar became more than 40 percent more expensive
  • Dairy products became 15 percent more expensive

It is worth knowing that inflation does not immediately reflect price increases in the agricultural and meat industries. Contrary to appearances, this is not good news for consumers. Rising raw-material prices will most likely mean that food price increases will continue to accelerate. In other words, before long we will pay even more in shops for milk, cold cuts, sweets, cheese and beverages than we do now.

The second important indicator is the CPI index compiled by GUS, which shows price increases for specific food products—in other words, the items purchased by consumers. At present, the overall increase in food prices exceeds 5%. This may seem insignificant, but it should be remembered that, according to data from the Central Statistical Office, the average Polish household spends almost 28% of its monthly income on food.

In this context, it is not surprising that the financial situation of the average consumer is deteriorating, resulting in a poorer assessment of creditworthiness by banks. Consequently, there is growing demand for attractive non-bank loans, such as those offered by Szybka Gotówka, which customers use specifically for consumption purposes.

What does inflation look like in other sectors in Poland?

Food is of course not the only category affected by rising inflation in Poland. Increases in electricity prices are also highly noticeable. It is currently estimated that electricity became approximately 15 percent more expensive in November compared with the same period of the previous year.

Increases have also been recorded in housing and construction-material prices. As for the latter category, price increases in Poland are sometimes truly alarming, as they can exceed 100%!

The increase in housing prices in 2021 is associated with the factors mentioned above. GUS estimates indicate that, statistically, apartments became more than 8% more expensive over the past 12 months. However, this does not tell the whole story, because these data cover the entire housing market, including rural areas and smaller cities, where inflation in apartment prices was considerably less dynamic.

Inflation in Poland and rising apartment rental prices

Inflation in Poland inevitably also affects residential rental prices. Here too, considerable variation can be observed depending on the city and the size of the apartment. In some cases, however, the past 12 months led to apartment price increases of as much as 10 percent or more. This was the case, among other places, in Kraków, Łódź and Szczecin.

Inflation in Poland: can a microloan be a remedy?

Unfortunately, all indications are that inflation in Poland will continue to rise, especially with regard to food and fuel prices, where the government has very limited possibilities for intervention. Meanwhile, Christmas is approaching, followed shortly afterward by the New Year—the time when we would like to forget, at least for a moment, about the difficult conditions surrounding us.

This is possible thanks to the fast online loans on attractive terms offered by Szybka Gotówka. In the event of repayment problems, customers can always activate the option to extend the repayment period. Fast online money can allow us to make at least basic Christmas and New Year purchases without having to dip into our savings or create a hole in the household budget.