Future inflation index moves up visibly in March
March 15, 2017
Poland's future inflation index (WPI) increased by 0.8 pts in March after rising by 0.7 pts in February, signaling inflation growth in H1 2017, the Bureau for Investments and Economic Cycles (BIEC) said in its monthly report.
"It's the 17th month of continued increase of the index, while as of December 2016 the increases have been much stronger than in the previous months," BIEC wrote. "One can thus expect that at least in the first half of the year we will be seeing intensifying inflation."
Price growth is driven by both short-term, exogenous factors such as commodity prices or the FX rate and local factors tied to growing private consumption as well as higher debt servicing costs.
Of the six index components in March, four have worked towards inflation acceleration and two towards its deceleration, the report showed.
The strongest of the pro-inflationary factors of late has been the price of government debt.
Global energy and food prices have also been a strong driver.