In Polish: Inflacja
This is the word you will see in bank documents.
Definition
Inflation is the rise in the general price level of goods and services over time, measured in Poland by Statistics Poland (GUS) with the consumer price index (CPI). In September 2026 prices were 4.1% higher than a year earlier. The NBP inflation target is 2.5% with a tolerance band of 1 percentage point.
What it means for you
High inflation pushes the Monetary Policy Council to raise rates, which increases the instalment of a variable-rate loan. At the same time inflation reduces the real value of debt, because you repay it with money that is worth less and less. This works in your favour only if your income rises with prices.
Full entry in Polish, with a worked example and sources
Frequently asked questions
What is inflation in Poland?
4.1% year on year in September 2026 according to GUS. The NBP target is 2.5%, plus or minus 1 percentage point.
Is inflation good for borrowers?
Partly. It reduces the real value of debt, but usually leads to higher rates and a higher instalment on a variable-rate loan. You benefit when your income rises along with prices.
Should I choose a fixed rate when inflation is high?
A fixed rate protects the instalment for the fixed period, usually 5 years. The choice depends on how large an increase your budget can absorb, not on an inflation forecast.
Related terms
Definitions are simplified and reflect Polish law and bank practice as of October 2026. Where every word matters, the Act and your loan agreement decide. Figures in examples are indicative and are not a bank offer. The Polish version of each entry has worked examples and sources.
Other terms in “Interest rates and benchmarks”