Poland: Inflation unchanged in February
March 15, 2011
In February, consumer prices added 0.2% over the previous month, well below the 1.2% increase observed in January. According to the Central Statistics Office (GUS), the subdued monthly reading was the result of falling prices for clothing and footwear (-2.3% mom) and fuel (-1.5% mom), which compensated for a relatively weak rise in food costs (+0.7% month-on-month). Annual headline inflation remained unchanged at the 3.6% recorded in January (previously reported: 3.8%), which was below market expectations of 3.9%. Inflation is currently at its highest level since April 2009, after falling to a three-year low of 2.0% in August 2010. Moreover, annual average inflation inched up from 2.6% in January to 2.7% in February. According to the Inflation Report from March 2011, the Central Bank estimates that inflation will end the year at 3.2% and ease to 2.8% in 2012.