While food inflation has slowed 4.0% and petrol costs 1.7% less than a year ago, the price of services has risen by 6.2%, with no let-up for the last 6 months, says a report by Poland’s central statistics office.

The report published on Friday shows a 12% y/y increase in household services for August compared to 3.5% y/y and 6.2% y/y in July for services as a whole.

Zbigniew, a Warsaw heating and plumbing installation specialist with 35 years’ experience told TVP World: “It’s a question of supply and demand. There are no young people coming into the business, no schools training young people, so specialists can name their price. Maybe a few Ukrainians, but that’s all.

“For home plumbing jobs, if a guy doesn’t want to take jobs on the weekend or in the evening, then he won’t. So, if it’s a job for an individual, then the sky is the limit.

“For larger installation work, tender price for laying piping is now fixed at 65 zł (€ 15.15) per hour, that’s gone up maybe 14 percent over the last 12 months.”

Price rises are also seen by other businesses, such as real estate agencies.

“We can see prices going up. If we engage cleaners, it now costs 35 złotys per hour (€8.16), while last year it would be 25-30 zlotys (€5.83-6.19).” Mirosława, an agent working in southern Warsaw said.

“The photographer we use also just put up his price,” she continued.

“Our fees are fixed percentages of property sale and rental prices, and those are unchanged, but as those sale prices have gone up and the sellers get more for their houses, then the total fee sellers pay the agent has gone up too.”

According to rynekpierwotny.pl property site, Warsaw property prices have gone up 9% year on year.

With a lack of suppliers and demand returning with a vengeance it seems that core inflation, which will be announced next week, will continue to drive prices upwards.

That’s the view of analysts at ING Bank Śląski who estimate that core inflation is still in the same 3.7-3.8% year-on-year in August that was reported in July.

In September, “the expected significant increase in prices in education” will kick in according to the ING analysts, after a 9.0% annual rise in August.