Poland: Inflation accelerates to a 32-month high in April
May 13, 2011
In April, consumer prices increased 0.5% over the previous month, which nearly halved the 0.9% price rise observed in March. According to the Central Statistics Office (GUS), the monthly reading reflected substantial increase in transport prices (+1.7% month-on-month) as well as higher prices for food (+0.7% mom), which nevertheless grew at a slower pace than in March (+1.7% mom). As a result of the pronounced price increase, annual headline inflation rose from 4.3% in March to 4.5% in April, which was in line with market expectations. Inflation is currently at its highest level since August 2008, by far exceeding the Central Bank's target of 2.5% with a tolerance margin of 1.0 percentage point. Annual average inflation stepped up from 2.8% in March to 3.0% in April. According to the Inflation Report from March 2011, the Central Bank estimates that inflation will end the year at 3.2%, before easing to 2.8% in 2012.