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Reuters
Reuters
Business
By Alan Charlish and Pawel Florkiewicz

Polish child benefit hike could hamper inflation fight, say economists

FILE PHOTO: Children take part in a lesson after schools reopened for grades 1-3 amid the coronavirus disease (COVID-19) lockdown in Warsaw, Poland, May 25, 2020. REUTERS/Kacper Pempel/File Photo

Poland's ruling nationalists are hoping a pledge to increase child benefit payments can help them deliver a third straight election victory this year, but economists warn the move could make fighting inflation harder.

The '500+' child benefit programme played a crucial role in the Law and Justice (PiS) party's election victory in 2015, and despite initial criticism from the party's political opponents the idea of universal child benefits is now widely accepted in Poland.

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