Poland: Inflation increases in February
March 17, 2014
In February, consumer prices rose 0.1% over the previous month, which matched the result observed in the two previous months and was in line with market expectations. According to the Central Statistical Office (GUS), the increase was mainly driven by a rise in prices for food, beverages and tobacco. Annual headline inflation increased from 0.5% in January to 0.7% in February, which fell short of market expectations of 1.0%. Inflation is still 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, increased 0.2% over the previous month in February (January: -0.4% month-on-month). Annual core inflation rose from 0.4% in January to 0.9% in February. The Central Bank expects inflation to end 2014 at 1.7% and increase to 1.9% by the end of 2015. FocusEconomics Consensus Forecast panelists expect inflation to end 2014 at 2.1%, which is unchanged from last month's projection. In 2015, the panel expects inflation to accelerate to 2.4%.
Author: Carl Kelly, Economist