INFLATION, MONETARY POLICY - Poland's inflation will likely stay at heightened levels in the 4.5-5.0% range in the coming months, the daily Parkiet writes citing economic forecasts. The trend is unlikely be reversed soon as on top of supply chain disruptions expected to last even to next year, Poland will face increased supply-demand imbalance due to rebounding household consumption and impulses from the EU's recovery fund and the Polish Deal, ING BSK economist Dawid Pachucki forecasts. Prices at restaurants and hotels rose by 0.9% m/m in May, the highest monthly increase in over a decade, Santander BP economists noted. The MPC is refraining from taking action now but could implement some policy changes if the next two projections show there is a risk inflation levels would solidify at high levels in mid-term, senior economist at Pekao Adam Antoniak predicts noting a rate hike could then take place as early as in November. (Parkiet, Dziennik Gazeta Prawna)

PUBLIC FINANCE, LIQUIDITY MANAGEMENT - Poland maintains an increased liquidity cushion in case turbulence on financial markets or problems with borrowing needs financing occurred, a Finance Ministry insider tells DGP daily. Debt supply in the coming months will be flexible and adjusted to both, the borrowing needs and market conditions, the ministry said. (Dziennik Gazeta Prawna)

BUSINESS SERVICES - Polish business services sector increased employment by 3.9% y/y to 355.3k at end-Q1, vs 10% increase recorded a year prior, according to the latest report by business services lobby ABSL. 80% of firms plan to increase employment next year, up by 3 pps vs last year data. (Puls Biznesu, Rzeczpospolita)

COVID - Poland is detecting more cases of delta Covid variant, with the variant accounting for 2% of cases in the Silesia region, but for the time being Poland can easily separate people infected from the rest of society, Health Ministry said. (Dziennik Gazeta Prawna)