Poland: Inflation continues to slow in May
June 13, 2013
In May, consumer prices fell 0.1% over the previous month, which contrasted the 0.4% increase observed in April. According to the Central Statistical Office (GUS), the decrease was mainly influenced by lower prices for transport.
As a result of the monthly decrease, annual headline inflation fell from 0.8% in April to 0.5% in May, which came in below market expectations of 0.8%. In fact, the reading represents the lowest inflation level observed since March 2006 and is well below the Central Bank's target of 2.5% plus/minus 1.0 percentage point. Meanwhile, the core consumer price index, which excludes food and energy prices, rose 0.6% over the previous month, driving annual core inflation up to 1.1% in April, the latest month for which data are available.
The Central Bank expects inflation to end both 2013 and 2014 at 1.6%. FocusEconomics Consensus Forecast panellists expect inflation to end this year at 1.4%, which is down 0.3 percentage points from last month's projection. In 2014, the panel expects inflation to accelerate to 2.2%.