“If these anti-inflation shields for food, energy and gas are not expanded now, we will experience a rise in inflation again,” Prof. said in an interview with wPolityce.pl. Norbert Maliszewski. According to him, the decisive factor will be the behavior of consumers, who will again fear high inflation, which will put pressure on wage increases and margin growth.
Prof. Norbert Maliszewski believes that those in power misinterpret social moods and needs.
This is very bad news for the poorest consumers, especially now during the holidays. Those in power use the concept of the average, and do not know that food is particularly important for the poorest people when it comes to their grocery basket. Food is one of their basic expenses and this 5%. has a major impact on their wallets
– emphasizes Prof. Maliszewski, who until recently headed the Government Analysis Center, which was closed by Tusk in March.
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Morawiecki’s government
It was RCA that developed the anti-infrared shield mechanism.
The Government Analysis Center was the founder of the zero VAT rate on food. This idea was much appreciated. It was a sign of the fight against inflation, that is, everyone saw that the government was trying to limit inflation, which had an impact on consumer behavior
– as highlighted by Prof. Maliszewski, the United Right government managed to extinguish pro-inflation consumerism.
A certain psychological mechanism then comes into effect. It means that people notice the government’s efforts to curb inflation and feel that it is under control. And when this is under control, the threat of wage-price and margin-price spirals disappears. In other words, when people feel inflation is high, they demand high margins or want much higher payouts as a form of protection. These spirals then cause further inflationary effects
– explains the former head of the Government Analysis Center.
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Government decisions drive inflation
Unfortunately, the Tusk government’s decisions will increase uncertainty among consumers and, as a result, increase their pro-inflation behavior.
If these anti-inflation shields for food, energy and gas are not expanded now, we will experience another rise in inflation. This increase will not only be limited to the expected 4 percentage points, but will also include these negative psychological mechanisms
– emphasizes Prof. Maliszewski and warns that such government decisions could lead to a slowdown in the downward trend of inflation.
Maintaining the shields has a positive impact on GDP growth. Consumer sentiment is an important issue here. The more expensive the prices, the less consumption. This is not the time to give up on anti-inflation shields. It would be good to extend them for some time, at least to achieve a safe level of reduction in these inflation rates
– summarizes the scientist.
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Source: wPolityce