Poland: Inflation rises to over four-year high in January
February 13, 2017
Consumer prices rose 0.4% over the previous month in January, which came in lower than the revised 0.7% increase in December (previously reported: +0.5% year-on-year). According to the Central Statistical Office (GUS), January’s result was driven by growth across nearly every sub-component of the price index, with increases in food and energy prices contributing most to the rise. Transport and clothing and footwear prices, on the other hand, fell from a month earlier.
Inflation rose to 1.8% in January, the highest rate in more than four years (December: 0.8%) and 0.2 percentage points ahead of market expectations. The continuing depreciation of the zloty likely accelerated price pressures in January. With January’s rise, the inflation rate approached the Central Bank’s target of 2.5% and fell within its tolerance margin of plus/minus 1.0 percentage point. Meanwhile, annual average variation in consumer prices inched up to minus 0.4% from December’s minus 0.6%. Core consumer price data for January and February will be released together on 15 March.
Author: Christopher Thomas, Economist