Poland's consumer inflation at 0.7pct in December
January 16, 2014
Poland's December consumer prices were up 0.7% year on year and up by 0.1% month on month matching consensus expectations, the Central Statistical Office (GUS) said in a statement.
Average annual inflation in 2013 amounted to 0.9%, GUS also said.
Reduction of prices related to communications (by 11.6%), lower clothing and footwear prices (by 4.9%) brought down the annual CPI by 0.48 ppt and 0.23 ppt respectively, GUS said in a comment to the data.
On the other hand, a 1.8% increase of dwelling costs as well as 1.7% increase of food prices pushed the index up by 0.46 ppt and 0.37 ppt respectively, GUS also said.
Foods and fuel prices drove inflation up, BZ WBK Economist Piotr Bielski said.
“After more than six months of very low food prices growth rate, December was the first month to show a quite clear increase. Also on the fuels market, prices were somewhat higher at the end of 2013”.
In other areas one could see stabilization and even price declines, which indicates that there is no fundamental inflationary pressure, Bielski added.
In his opinion CPI will move above 1% in Q1 and reach about 2% by year-end, he said.
PEKAO SA Economist Wojciech Matysiak said that an important factor increasing inflation at the beginning of the year is the planned increase by 15% of excise tax for spirits.
“ Inflation may approach the 1.5% level, the lower end of the NBP target range, at the end of Q1”, he said.