Food inflation in Poland could reach 3.2% year on year in H2 2017, according to Credit Agricole analyst Jakub Olimpra, while Prof. Krystyna Swietlik expects even 4% price growth.
In June, the prices of butter and apples jumped by 25%, the price of sugar was up by 12% and of pork by 11%, according to estimates of Credit Agricole.
The spike in the price of butter can be traced to reduced milk supply on global markets combined with higher demand across Europe, Swietlik explained for the daily Rzeczpospolita.
As for pork, rising EU exports to China have reduced supply, BGZ BNP Paribas expert Michal Kolesnikow said. That coincided with higher domestic demand spurred by the child benefit program 500+, according to Swietlik.
Pork price growth should slow down at end-year, Kolesnikow expects.