Poland: Inflation falls to lowest level since mid 2006
April 15, 2013
In March, consumer prices edged up 0.2% over the previous month, which was above the flat reading observed in February. According to the Central Statistical Office (GUS), the increase was mainly influenced by higher prices for recreation and culture, food as well as for transport.
Despite the monthly increase, annual headline inflation fell from 1.3% in February to 1.0% in March, which came in below market expectations of 1.1%. In fact, the reading represents the lowest inflation level observed since June 2006 and is 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, inched down 0.1% over the previous month, driving annual core inflation down to 1.1% in February, 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 1.9%, which is down 0.3 percentage points from last month's projection. In 2014, the panel expects inflation to accelerate to 2.3%.