Poland: Inflation falls to lowest level since May 2022 in April
Inflation came in at 14.7% in April, down from March’s 16.1%. April’s reading represented the lowest inflation rate since May 2022. The slowdown was primarily driven by slower rises in prices for food housing and utilities and food and non-alcoholic beverages as well as by falling prices for gasoline. In particular, the slower growth in prices for food was largely due to a high reference base, as in April 2022 food prices recorded a notable jump.
Annual average inflation rose to 16.3% in April (March: 16.2%). Meanwhile, core inflation rose to 12.3% in March (the latest month for which data is available), from the previous month’s 12.0%.
Lastly, consumer prices increased 0.90% in March over the previous month, coming in below March’s 1.10% rise.
Commenting on the release, Rafal Benecki, chief Poland economist at ING, stated:
“We have seen a decline in consumption for two quarters, but after several years of booming incomes and consumption, companies are still able to pass costs onto prices. In addition, businesses are probably still using up stocks purchased ‘just in case’ at high prices. Core price growth has been above 1% MoM in recent months, suggesting that price pressures remain high, and bringing inflation back to target will be a major challenge for the National Bank of Poland and will not materialise any time soon. At the end of 2023, we see the headline inflation rate below but close to 10%.”