Inflation eats away at our salaries and savings. A well-known economist has calculated how much money we are losing due to high prices, which systematically eat into wage growth.
“It hasn’t been this expensive in years,” other financial experts say. In their opinion, high inflation and high prices in stores are systematically eating away at our salary increases.
Economist calculates how much money we lose due to inflation
Marcin Czaplicki, an economist at PKO BP, calculated how much the average Kowalski is worth due to the high inflation that we have been fighting in our country for many months. The expert claims that the latest data from the Central Statistical Bureau for Monday allow this to be estimated.
“If inflation in 2022 had been the target of the NBP (2.5%), Poles would have paid PLN 175.5 billion less for goods and services last year! This gives PLN 4,620 per person,” the economist wrote on Twitter.
This amount is roughly equivalent to one average monthly salary in 2022. According to the Central Statistical Office, the average salary was PLN 6,346 gross, i.e. PLN 4,656 net.
The calculator will tell you how much we are losing due to inflation
This is still a small amount compared to the amount from the calculator, which allows us to check how much inflation reduces our salaries. It was created by Dominik Czernia, Doctor of Physical Sciences, Institute of Nuclear Physics, Polish Academy of Sciences. His calculator takes into account the current inflation rate. The calculations were made in February. The average salary was introduced: PLN 6,883.96 gross, i.e. PLN 5,022 net. Calculations show that during the year we lose PLN 8,352 net, that is, almost two additional average salaries.
“Now let’s ask ourselves what we have done with these additional 4600.PLN and let’s look at this year’s forecasts for a decrease in consumption in the domestic sector. Well, these 4.6 thousand, we no longer have zlotys in our wallets,” Marcin Czaplicki, an economist at PKO BP bank, is perplexed.
The peak of inflation was supposed to come in February. This was the result of expert estimates. Official data will be known no earlier than mid-March. Now the Polish economy must get out of this hole. In the coming months, inflation will gradually slow down to around 13 percent. for the whole of 2023.
Source: Wprost
I am George Brown, author at Daily News Hack. I mostly cover economy news and I have been doing this for quite some time now. I have a lot of experience in this field and I’m always looking for new opportunities to learn more.
