Kotecki: Increased reinforcement expenses should not affect consumer inflation

Planned, increased expenditure on reinforcement should not affect consumer inflation – assessed a member of the Monetary Policy Council Ludwik Kotecki, during a panel at the European Economic Congress in Katowice.

“These are not goods that are in the consumer basket, we are not talking about this inflation. Some prices in the economy would increase, but not CPI – not the inflation that the monetary policy is most interested in. Fortunately, this probably will not be the effect of CPI,” said Kotecki.

“If we buy abroad, the national effect will also be limited – it will simply be the outflow of funds and will not affect inflation,” he added.

A member of the MPC estimated that – in a macroeconomic context – reinforcement expenditure is not the most productive way to spend money.

“This is probably more a policy than an investment in the development of the economy. You can probably imagine better spending of these funds, for example on innovation or infrastructure, here the return would be much greater than investing in reinforcement” – he pointed out. (PAP Biznes)

Pat/ Ana/