Poland: Inflation inches up in December
January 15, 2014
In December, consumer prices rose 0.1% over the previous month, which contrasted the 0.2% decrease observed in November. The result matched market expectations. 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 inched up from 0.6% in November to 0.7% in December, which matched market expectations. 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 0.2% over the previous month in November (the latest month for which data are available). Annual core inflation fell from 1.4% in October to 1.1% in November.
The Central Bank expects inflation to end 2014 at 1.2%. 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