Poland's June CPI rises to 0.3pct y/y
July 16, 2014
Polish consumer price inflation edged up to 0.3% year on year in June from 0.2% y/y from the previous month, a notch above the consensus forecast for a 0.2% annual gain, according to a report from the Central Statistics Office (GUS).
Consumer prices were flat month on month. The consensus survey conducted by PAP Polish news agency had shown expectations for a 0.1% decrease.
The annual CPI reading was predominantly affected by growth of dwelling costs by 1.6% as well as hikes of prices of alcoholic beverages and tobacco products by 4%, GUS said in its statement.
In monthly terms, inflation was notably affected by a spike in communication and recreation, offset by prices of food and non-alcoholic beverages as well as clothing and footwear.
According to Bank Pekao Economist Wojciech Matysiak
the inflation rate will fall below zero in July. It will result from last year's high-base effect tied to a spike in prices of waste collection. Deflation may be continued in the following months, he said but it won't be a long-lasting phenomenon. Matysiak also said that a stronger price growth should be expected at the end of the year (in November and December). At the same time, CPI will remain clearly below the lower-end of the NBP inflation target range, he said.
“Today's inflation reading cools expectations of a rate cut in the near future”, he added.