Poland: Inflation continues to decelerate in August
September 13, 2012
In August, consumer prices fell 0.3% over the previous month, which followed the 0.5% decline observed in July. According to the Central Statistical Office (GUS), the decrease was mainly influenced by lower prices for clothing and footwear as well as for food. Annual headline inflation edged down from 4.0% in July to 3.8% in August, which came in line with market expectations. As a result, inflation remains above the Central Bank's target of 2.5% plus/minus 1.0 percentage point for a 20th consecutive month. Meanwhile, the core consumer price index, which excludes food and energy prices, inched up 0.1% over the previous month, driving annual core inflation to 2.3% in July, the latest month for which data are available. The Central Bank estimates that inflation will end this year at 3.9%, before moderating to 2.7% by the end of 2013.