Poland: Inflation eases in July
August 14, 2012
In July, consumer prices fell 0.5% over the previous month, which contrasted the 0.2% increase observed in June. According to the Central Statistical Office (GUS), the increase was mainly influenced by lower prices for clothing and footwear as well as for food. Annual headline inflation fell from 4.3% in June to 4.0% in July, which was below market expectations that had inflation moderating to 4.1%. As a result, inflation remains above the Central Bank's target of 2.5% (plus/minus 1.0 percentage point) for a 19th consecutive month. Meanwhile, the core consumer price index, which excludes food and energy prices, rose 0.1% over the previous month, driving annual core inflation to 2.3% in July. The Central Bank estimates that inflation will end this year at 3.9%, before moderating further to 2.7% by the end of 2013.