Poland: Inflation inches down in September
October 15, 2013
In September, consumer prices rose 0.1% over the previous month, contrasting the 0.3% fall observed in August. The result was in line with market expectations. According to the Central Statistical Office (GUS), the increase was driven by a slight rise in prices for transport as well as clothing and footwear.
Annual headline inflation inched down from 1.1% in August to 1.0% in September, which was just below market expectations of no change. 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, decreased 0.1% in August (the latest month for which data are available) over the previous month. Annual core inflation remained at the 1.4% registered in July.
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 unchanged from last month's projection. In 2014, the panel expects inflation to accelerate to 2.1%, which is also unchanged from last month's forecast.
Author: Carl Kelly, Economist