Poland: Decrease in annual consumer prices softens in December
January 18, 2016
In December, consumer prices fell 0.2% over the previous month, which followed November’s 0.1% decrease and marked a three-month low. The reading matched market expectations. According to the Central Statistical Office (GUS), December’s decrease mainly reflected that lower prices for transport more than offset an increase in prices at restaurants and hotels.
Consumer prices dropped 0.5% annually in December, which was above the 0.6% drop tallied in November and marked the highest reading since September 2014. However, inflation remains well below the Central Bank’s target of 2.5% with a tolerance margin of plus/minus 1.0 percentage point.
Meanwhile, the core consumer price index, which excludes food and energy prices, recorded zero growth in December compared to the previous month (November: -0.1% month-on-month). Core inflation remained stable at November’s 0.2% in December. Finally, core average inflation in December was unchanged at November’s 0.3%.
Author: Eric Denis , Economist