Poland: Inflation holds steady in August
September 13, 2013
In August, consumer prices fell 0.3% over the previous month, contrasting the 0.3% rise observed in July. The result was in line with market expectations and marked the lowest level in 13 months. According to the Central Statistical Office (GUS), an increase in prices for food and non-alcoholic beverages as well as for housing was partially offset by lower prices for clothing and footwear in addition to transport.
Annual headline inflation stayed put at July's 1.1% in August, meeting market expectations. Inflation is still below the Central Bank's target of 2.5% with a tolerance margin of plus/minus 1.0 percentage point. Meanwhile, the core consumer price index, which excludes food and energy prices, increased 0.6% in July (the latest month for which data are available) over the previous month. Annual core inflation rose to 1.4% in July, following the 0.9% increase in June.
The Central Bank expects inflation to end 2013 at 0.8% and 2014 at 1.2%. FocusEconomics Consensus Forecast panelists expect inflation to end this year at 1.1%, which is down 0.1 percentage points from last month's projection. In 2014, the panel expects inflation to accelerate to 2.1%.
Author: Carl Kelly, Economist