Poland Inflation


Inflation rebounds in August

In August, consumer prices were flat over the previous month, contrasting the 0.3% price decline observed in July. The reading reflected lower prices for food and clothing, which were completely offset by higher prices in the communication and housing categories. Despite the flat reading, annual headline inflation edged up from 4.1% in July to 4.3% in August. The result saw inflation exceed the Central Bank's target of 2.5% ( 1.0 percentage point) for an eighth consecutive month. Core inflation, which excludes food and energy prices, remained stable in July at 2.4%, the latest month for which data are available. The Central Bank estimates that inflation will end the year at 4.0%, before moderating to 2.7% in 2012.


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