Poland: Consumer prices hit multi-year low in December
January 15, 2015
In December, consumer prices fell 0.3% over the previous month. December’s result came in below both the 0.2% drop recorded in November and the 0.2% decline that the markets had expected. According to the Central Statistical Office (GUS), December’s decline mainly reflected a sharp drop in prices for transportation as a result of low global energy prices.
Consumer prices dropped 1.0% annually in December, which was down from the 0.6% fall registered in November and marked a multi-year low. As a result, inflation remained well 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, recorded a flat reading in December compared to the previous month, which represented the strongest increase in three months. As a result, annual core inflation inched up from 0.4% in November to 0.5% in December.
Author: Cecilia Simkievich, Economist