Poland: Inflation rises in June amid lockdown easing
July 2, 2020
Consumer prices jumped 0.7% over the previous month in June, following May’s 0.2% decline, according to provisional data released by the Poland’s Statistical Institute (GUS). Soaring prices for food and non-alcoholic beverages and for electricity, gas and other fuels more than offset slumping prices for fuels for personal transportation-which nevertheless dropped at a softer pace than in May. Core consumer prices in May (the latest month for which data is available) dipped 0.1% in month-on-month terms, swinging from April’s 0.8% jump.
Inflation rose from 2.9% in May to 3.3% in June, and thus moved closer to the upper bound of the Central Bank’s target range of 2.5% plus or minus 1.0 percentage point. For its part, core inflation came in at 3.8% in May, up from April’s 3.6% and the highest print since February 2002.
All told, annual average inflation was stable at May’s 3.3% in June, the highest reading since February 2013.
Commenting on the release, Piotr Poplawski, Poland senior economist at ING, stated:
“The high CPI reading should have a minor impact on the Monetary Policy Committee. The council is largely focused on the real economy, rather than price stability. And weakening labour market conditions should curb CPI soon anyway. We expect rates to remain unchanged at least until 2022.”