Poland: Inflation edges down in October
November 14, 2013
In October, consumer prices rose 0.2% over the previous month, following the 0.1% fall observed in September. The result came in just below market expectations of a 0.3% rise. According to the Central Statistical Office (GUS), the increase was mainly driven by a rise in prices for clothing and footwear as well as for communication.
Annual headline inflation edged down from 1.0% in September to 0.8% in October, which was just shy of market expectations of no change. Inflation is still below the Central Bank's target of 2.5% with a tolerance margin of plus/minus 1.0 percentage point. Meanwhile, the core consumer price index, which excludes food and energy prices, decreased 0.1% in September (the latest month for which data are available) over the previous month. Annual core inflation inched down from 1.4% in August to 1.2% in September.
The Central Bank expects inflation to end 2013 at 0.8% and 2014 at 1.2%. FocusEconomics Consensus Forecast panelists expect inflation to end this year at 1.1%, which is unchanged from last month's projection. In 2014, the panel expects inflation to accelerate to 2.1%, which is also unchanged from last month's forecast.
Author: Carl Kelly, Economist