The change from 500+ to 700+ is no longer enough to maintain the value of the benefit

In February, inflation reached a record level of 18,4 percent, and if not for changes in the inflation basket made by GUScould approach 20%. This causes prices to rise, but also the real value of benefits that are not indexed to fall. Today, the 500 Plus benefit is worth only PLN 342 at the prices from the start of the program, i.e. from April 2016. Currently, in order to ensure the real, originally intended value of this benefit, it should be indexed to 800 Plus.

Elections are just around the corner: 800 Plus instead of 500 Plus?

With the upcoming elections, voices regarding the possible valorization of the 500 Plus benefit are intensifying. This is because inflation has already eaten up over 30 percent. its initial value. The PLN 500 paid to parents today is now worth only PLN 342 at the prices from the start of the program, i.e. April 2016. For the benefit to have the same value today as then, it should currently amount to PLN 731, so it would be closer to 800 Plus (payment of PLN 800 for each child), and not 700 Plus, which was recently mentioned.

Official CPI inflation given by the Central Statistical Office is an average basket of consumer goods. However, there are products that have become more expensive than inflation suggests. This is the case with food or petrol, so the real value of the benefit for some families may be even lower than PLN 342.

How much is the benefit from the 500 Plus program really worth (prices as at 1.04.2016/XNUMX/XNUMX). Source: Central Statistical Office, own calculations

About the author

Pawel Majtkowski - analyst eToro on the Polish market, which shares its weekly commentary on the latest stock market information. Paweł is a recognized expert on financial markets with extensive experience as an analyst in financial institutions. He is also one of the most cited experts in the field of economy and financial markets in Poland. He graduated from law studies at the University of Warsaw. He is also the author of many publications in the field of investing, personal finance and economy.