Poland: Consumer prices hit an all-time low in February
March 16, 2015
In February, consumer prices fell 0.1% over the previous month. February’s result came in slightly above the 0.2% drop recorded in the previous month, but was just below the flat reading that the markets had expected. According to the Central Statistical Office (GUS), February’s decline mainly reflected lower prices for transport, as well as for clothing and footwear. Conversely, prices for food and beverages were higher than in the previous month.
Consumer prices dropped 1.6% annually in February, which was down from the 1.4% drop tallied in January and marked an all-time low. As a result, inflation continues to move further away from 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, recorded a flat reading in February compared to the previous month. Despite the slight improvement, annual core inflation inched down from January’s 0.6% to 0.4% in February.
Author: Cecilia Simkievich, Economist