The final reading of consumer inflation for April came in at 3.2 percent year on year, in line with earlier estimates. On a monthly basis, prices increased by 0.6 percent.
An analysis of the data structure shows that in April most categories in the inflation basket recorded price increases compared with the previous month. The exception was transport, which was largely influenced by the launch of the CPN protective programme, in force since the end of March.
Inflation remains within the permissible deviation band from the National Bank of Poland’s inflation target of 2.5 percent, plus or minus 1 percentage point. This is an important argument supporting the Monetary Policy Council’s cautious approach to further decisions on interest rates.
Statements by MPC members currently indicate that the Council is maintaining a “wait and see” strategy. It is also becoming increasingly clear that the July inflation projection will be of key importance for future decisions. Particularly important will be the assessment of the extent to which inflationary pressure is spreading to other areas of the economy and whether it is becoming more persistent.
Disclaimer: The information contained in this publication is for informational purposes only. It does not constitute financial advice or any other form of advice, is general in nature and is not addressed to any specific recipient. Before using this information for any purpose, independent advice should be sought.
