Poland Inflation (Core, ann. var. %, eop)

Inflation comes in at highest level since December 1996 in February

Inflation came in at 18.4% in February, up from January’s 16.6%. February’s reading represented the highest inflation rate since December 1996. The slowdown was primarily driven by a slower rise in prices for food and non-alcoholic beverages. In addition, price pressures for housing, water, electricity, gas and other fuels increased at a more moderate rate.

Annual average inflation rose to 15.7% in February (January: 14.9%). Meanwhile, core inflation rose to 12.0% in February, from the previous month’s 11.7%.

Lastly, consumer prices increased 1.20% in February over the previous month, coming in below January’s 2.50% rise.

Commenting on the release, Rafal Benecki, chief Poland economist at ING, stated:

“The coming months will be marked by disinflation due to, among other things, a high reference base (especially from March 2022), the extinction of upward pressure on energy prices (LPG, fuels), and the freezing of some regulated prices. We expect the headline inflation rate (CPI) to decline to single-digit levels by the end of the year, although the decline in core inflation will be noticeably slower.”