Poland: Inflation jumps again in February
March 14, 2017
Consumer prices rose 0.3% over the previous month in February, which came in a notch below the 0.4% increase in January. According to the Central Statistical Office (GUS), February’s increase was broad-based, with prices climbing across the majority of the categories and only costs of clothing and footwear decreasing significantly. Notable was a sharp increase in food prices, with a bad harvest driving vegetable prices up in many Eastern European countries.
Inflation jumped to 2.2% in February, the highest rate in more than four years (January: 1.7%) and 0.1 percentage points above market expectations. With February’s rise, the inflation rate moved even closer to the Central Bank’s target of 2.5% and now sits comfortably within its tolerance margin of plus/minus 1.0 percentage point.
Meanwhile, annual average variation in consumer prices came in at minus 0.1% in February, above January’s minus 0.4%. Core consumer prices inched up 0.1% over the previous month. Core inflation was 0.3% in February, slightly higher than January’s 0.2% reading.