Inflation drops to over seven-year low in April

Latest reading: Inflation fell to 1.8% in April from March’s 2.7%, marking the weakest inflation rate since March 2018. Looking at the details of the release, transportation prices fell at a quicker pace in April on the back of lower fuel costs, and price pressures for food and non-alcoholic beverages eased. That said, costs for housing and utilities grew at a faster pace. As a result, the trend pointed down, with annual average inflation falling to 2.5% in April (March: 2.6%). Lastly, consumer prices dropped 0.13% in April over the previous month, contrasting March's 0.06% rise. April's result marked the weakest reading since December 2024.

Panelist insight: Commenting on the outlook, Katarzyna Rzentarzewska and Jakub Cery, analysts at Erste Bank, stated: “The central bank points to the elevated inflation of services that should warrant cautious approach regarding monetary policy. In the months to come, external factors such as low energy prices should help inflation to remain contained. Expectations for slower growth globally will limit the demand pressure as well.”

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