Poland: Inflation stabilizes in March
April 15, 2014
In March, consumer prices rose 0.1% over the previous month, which matched the result observed in the previous three months, but was slightly below market expectations of a 0.2% rise. According to the Central Statistical Office (GUS), the increase was mainly driven by a rise in prices for clothing and footwear.
Annual headline inflation held steady at February's 0.7% in March, which was in line with market expectations. Inflation is still well 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 (the latest month for which data are available). 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 to 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