Droughts that hit Poland over the last few months were not severe enough to inflate food costs significantly, but prices of grain used in bread may rise by more than 10%, Agriculture Minister Jan Krzysztof Ardanowski has said.
According to state meteorology institute IMGW, Poland experienced above-average temperatures from April to July, while the amount of rain was extraordinarily small. Some farmers feared that they might lose part of their agricultural production.
A sizzling summer has damaged crops in the European Union, leaving some farms struggling to survive.
Intensive Rains
"I don't think the drought will translate significantly into food price hikes. [...] Some crops were saved, thanks to the intensive rains in recent weeks," Ardanowski told Reuters.
Grains used traditionally in bread-making have suffered, and a production decline of more than 10% will translate into price rises of around 5%-15%, according to Ardanowski.
Year-on-year inflation in Poland remained at 2.0% in July – below the central-bank target of 2.5% – even though economic growth in Eastern Europe's biggest economy amounted to 5.1% in the second quarter.
In October, Poland will hold local elections – a test for the ruling Euro-sceptic Law and Justice (PiS) party, which remains top in opinion polls. So far, PiS has earmarked 800 million zloty (€187 million) to help farmers cope with drought.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
