Poland Inflation

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Poland: Annual consumer prices fall deeper into negative territory in August

September 15, 2014

In August, consumer prices fell 0.4% compared to the previous month. The reading was below the 0.2% decline that was observed in July, but met market expectations. According to the Central Statistical Office (GUS), the monthly drop was driven primarily by lower prices for clothing and footwear as well as for food and non-alcoholic beverages.

On an annual basis, consumer prices dropped 0.3% in August, which followed the 0.2% fall recorded in July. The reading represented the second consecutive annual drop in prices and the lowest reading on record. Prices had fallen below zero in July for the first time in more than 30 years. Inflation is drastically below the Central Bank’s target of 2.5%, with a tolerance margin of plus/minus 1.0 percentage points. Meanwhile, the core consumer price index, which excludes food and energy prices, was flat in July over the previous month (the latest month for which data are available). Annual core inflation dropped from 1.0% in June to 0.4% in July.

The Central Bank expects inflation to end 2014 at 0.2% and to increase to 1.4% by the end of 2015. FocusEconomics Consensus Forecast panelists expect inflation to average 0.6% in 2014, which is down 0.1 percentage points from last month’s projection. In 2015, the panel expects inflation to accelerate to 1.9%.


Author:, Economist

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Poland Inflation Chart


Poland Inflation August 2014

Note: Annual and monthly variation of consumer price index in %.
Source: Central Statistical Office (GUS).


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