Prime Minister Mateusz Morawiecki said that the government was considering extending the anti-inflationary shield in whole or in part. The current version of the shield is valid until the end of July. “It is highly probable that we will extend either the entire shield or most of its essential elements”, the head of government remarked.

In line with the anti-inflationary shield 2.0, which entered into force on February 1 this year VAT has been lowered: on gas to 0% (from January 1 a change from 23 to 8%, and from February 1 from 8 to 0%); -on electricity to 5% (extension of the reduction from the 1.0 shield; reduction from 23 to 5%); – heating to 5% (from January 1 a change from 23 to 8%, and from February 1 from 8 to 5%). The shield also assumes a reduction in VAT on fertilizers from 8 to 0%.

As the prime minister said at the press conference, it is difficult to predict when the inflation peak will come.

“The current predictions are that it should occur in the second half of the year, but it also depends on the international situation. If the crisis in Ukraine worsens, if the increase in commodity prices continues to translate into higher and higher prices of all products, inflation may last longer”, emphasized Morawiecki.

He added that hopefully inflation would peak in the second half of the year as predicted by the NBP and international institutions.

The head of government noted that he called – and still calls the bank presidents to start increasing interest rates on deposits and current accounts. “Some institutions responded to the appeal – interest rates are higher, but their levels are still not sufficient compared to inflation”, said PM.

According to Morawiecki, the state showed investment opportunities that protect against inflation, in the form of anti-inflation bonds that are already available. Currently, the distribution network is being expanded.

“We ask, on the one hand, to maintain the principles of the free market and not to force banks to change prices, but on the other hand, to stimulate this growth”, emphasized the head of the Polish government.

Arkadiusz Słomczyński