Poland: Inflation falls to a record low in June
July 15, 2013
In June, consumer prices were unchanged over the previous month, which contrasted the 0.1% decrease observed in May. According to the Central Statistical Office (GUS), an increase in prices for transport as well as in recreation and culture were offset by lower prices for food, beverages and tobacco.
As a result, annual headline inflation fell from 0.5% in May to 0.2% in June, which came in slightly below the 0.3% expected by the market. In fact, the reading represents the lowest inflation level ever and is well below 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, inched down 0.1% over the previous month, driving annual core inflation down to 1.0% in May, the latest month for which data are available.
The Central Bank expects inflation to end 2013 at 0.8% and 2014 at 1.2%. FocusEconomics Consensus Forecast panellists expect inflation to end this year at 1.2%, which is down 0.2 percentage points from last month's projection. In 2014, the panel expects inflation to accelerate to 2.2%.