Poland: Inflation continues to accelerate in January
February 15, 2011
In January, consumer prices increased 1.2% over the previous month, up from the 0.4% rise recorded in December. According to the Central Statistics Office (GUS), the monthly rise was the result of higher prices for housing (+2.2% month-on-month) and food (+1.5% mom), which were partly offset by falling prices for clothing and footwear (-2.5% mom). On the back of the pronounced price increase, annual headline inflation surged from 3.1% in December to 3.8% in January, which was above market expectations of 3.4%. Inflation is now at its highest level since April 2009, after falling to a three-year low of 2.0% in August 2010. Nevertheless, annual average inflation remained unchanged for a third consecutive month at 2.6%. According to the Inflation Report from March 2011, the Central Bank estimates that inflation will end 2011 at 3.2% and ease to 2.8% in 2012.