Poland: Decrease in annual consumer prices moderates slightly in August
September 14, 2015
In August, consumer prices fell 0.4% over the previous month, which was below July’s 0.1% decline and marked a one-year low. However, the reading matched market expectations. According to the Central Statistical Office (GUS), August’s fall mainly reflected lower prices for clothing and footwear as well as for transport.
Consumer prices dropped 0.6% annually in August, which was slightly up from the 0.7% drop tallied in July and marked the highest reading in 10 months. As a result, inflation is still far below the Central Bank’s target of 2.5% with a tolerance margin of plus/minus 1.0 percentage point. Meanwhile, the core consumer price index, which excludes food and energy prices, fell 0.1% in August compared to the previous month (July: +0.2% month-on-month). Core inflation tallied 0.4% in August, mirroring July’s result. Finally, core average inflation remained stable at July’s 0.4%.
Author: Eric Denis , Economist