The proportion of companies in Poland increasing prices for products and services fell to 55% in 2024, down from 72% in 2023 and 74% in 2022, according to a study by the Polish Economic Institute (PIE). At the same time, 40% of companies kept their prices unchanged, marking a significant shift toward price stability despite lingering inflation. The survey, conducted in December 2024 among 1,000 companies, revealed a 20-percentage-point decline in the share of businesses raising prices compared to previous years. Concurrently, the percentage of companies maintaining stable pricing increased by a similar margin, reflecting an easing of the pricing pressures seen during the height of inflation in 2022 and 2023. Smaller enterprises were more likely than larger ones to raise prices, with 58% of small businesses reporting increases compared to 50% of large firms. In contrast, large companies were better positioned to stabilize or reduce prices due to more favorable negotiating conditions, with nearly 10% of them lowering prices in 2024, up from just 3% in the previous two years. Retail and professional services were the sectors most likely to report price increases in 2024, with 63% and 59% of companies in these industries raising prices, respectively. This contrasts with earlier years, when businesses in accommodation and catering were the most affected by inflation and pandemic-related disruptions, with nearly 90% increasing prices during 2022–2023. In 2024, price stabilization was most evident in industries like culture, entertainment, and recreation, as well as information and communication. In these sectors, 64% and 50% of companies, respectively, reported no changes to pricing. The shift toward stability is partly attributed to weakened household demand, which has reduced the capacity for businesses to raise prices further. The findings highlight a notable cooling in price pressures across Poland’s economy, with businesses adapting to evolving market conditions. While smaller enterprises continue to face challenges in maintaining price stability, larger firms are increasingly leveraging their stronger negotiating positions to offer competitive pricing. The shift signals a broader stabilization in the business environment, reflecting both easing inflationary pressures and shifts in consumer behavior. Source: PIE and ISBnews