Poland: Inflation moderates to near seven-year low in April
May 15, 2013
In April, consumer prices rose 0.4% over the previous month, which was above the 0.2% increase observed in March. According to the Central Statistical Office (GUS), the increase was mainly influenced by higher prices for clothing and footwear as well as for recreation and culture.
Despite the monthly increase, annual headline inflation edged down from 1.0% in March to 0.8% in April, which came in above market expectations of 0.7%. In fact, the reading represents the lowest inflation level observed since June 2006 and is well below the Central Bank's target of 2.5% plus/minus 1.0 percentage point. Meanwhile, the core consumer price index, which excludes food and energy prices, rose 0.3% over the previous month, driving annual core inflation down to 1.0% in March, the latest month for which data are available.
The Central Bank expects inflation to end both 2013 and 2014 at 1.6%. FocusEconomics Consensus Forecast panellists expect inflation to end this year at 1.7%, which is down 0.2 percentage points from last month's projection. In 2014, the panel expects inflation to accelerate to 2.3%.