Forbes: Polish Households Grapple with Rising Energy Costs and Inflation

Article published: September 7, 2022

IB Economics Syllabus: Macroeconomics (government intervention, fiscal policy, cost-push inflation)

Rising energy prices and inflation are intensifying the cost-of-living crisis in Poland. With the ongoing conflict in Ukraine affecting energy supplies, an estimated 1.6 million Polish households face energy poverty. Poland’s inflation rate reached a 25-year high of 16.1% in August, driven by escalating energy and food costs.

IB Economics (IA) Commentary Suggestions:

You could look into how geopolitical events, such as the conflict in Ukraine, can lead to energy shortages and influence inflation rates in countries like Poland. For a comprehensive analysis, consider using diagrams like the Aggregate Demand and Aggregate Supply (AD-AS) model to illustrate the effects of cost-push inflation and the Production Possibility Frontier (PPF) to show the trade-offs between different goods due to scarcity. Another perspective is to look into Poland’s reliance on external energy sources, emphasizing the importance of global trade. The key concept to focus on in this article is scarcity or economic well-being.

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