Poland: Inflation holds steady in January
February 14, 2014
In January, consumer prices rose 0.1% over the previous month, which matched the result observed in December, but came in 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 food, beverages and tobacco.
Annual headline inflation remained at December's 0.7%, which fell short of market expectations of 0.9%. Inflation is still below the Central Bank's target of 2.5% with a tolerance margin of plus/minus 1.0 percentage points. Meanwhile, the core consumer price index, which excludes food and energy prices, decreased 0.1% over the previous month in December (the latest month for which data are available). Annual core inflation inched down from 1.1% in November to 1.0% in December.
The Central Bank expects inflation to end 2014 at 1.7% and increase to 1.9% by the end of 2015. FocusEconomics Consensus Forecast panelists expect inflation to end 2014 at 2.1%, which is unchanged from last month's projection. In 2015, the panel expects inflation to accelerate to 2.4%.
Author: Carl Kelly, Economist