Poland: Inflation inches up in June, but stays well below target
July 15, 2014
In June, consumer prices were flat compared to the previous month. The reading came in above the 0.1% fall that was observed in May and overshot the 0.1% decline that the market had expected. According to the Central Statistical Office (GUS), much higher prices for communications were offset by lower prices in a number of categories, including clothing and footwear and furnishing and household equipment.
Annual headline inflation inched up from 0.2% in May to 0.3% in June, which was just above market expectations of 0.2%. May’s reading had matched the record low that was tallied in June 2013. Inflation is well below the Central Bank’s target of 2.5% with a tolerance margin of plus/minus 1.0 percentage points. Meanwhile, the core consumer price index, which excludes food and energy prices, was flat over the previous month in May (the latest month for which data are available). Annual core inflation held steady at April’s 0.8% in May.
Author: Carl Kelly, Economist