Poland: Inflation falls to lowest level in almost two years
November 14, 2012
In October, consumer prices rose 0.4% over the previous month, which was above the 0.1% increase observed in September. According to the Central Statistical Office (GUS), the increase was mainly influenced by higher prices for clothing and footwear as well as for food. Despite the monthly increase, annual headline inflation fell from 3.8% in September to 3.4% in October, which came in line with market expectations. In fact, the reading represented the lowest inflation level observed in almost two years. As a result, inflation remains within the Central Bank's target of 2.5% plus/minus 1.0 percentage point. Meanwhile, the core consumer price index, which excludes food and energy prices, was unchanged over the previous month, driving annual core inflation down to 1.9% in September, the latest month for which data are available.