Core inflation rises to new high of 12.3% in Poland
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- 03 May 2023
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While Poland’s headline inflation figure recently began to slow, core inflation – a measure that excludes goods with the most volatile prices, such as fuel and food – has continued to accelerate, reaching a new high in March.
The latest figures, released by the National Bank of Poland (NBP), show that core inflation hit 12.3% year-on-year in March, up from 12% in February and the 22nd consecutive month in which core inflation has accelerated. It is now at its highest level since 1998.
By contrast, the main inflation figure fell in March to 16.1% from a 26-year-high peak of 18.4% in February. It is forecast to continue to slow down over the coming months.
Core inflation is, however, seen to represent a more accurate indicator of underlying long-run inflation and of prices that can be influenced by monetary policy, given that fuel costs are largely set on international markets and food prices are dependent on seasonal factors.
“Core inflation reacts more slowly to shocks than the consumer price index, it is a more spread-out process over time,” says Bartosz Sawicki, an analyst at currency exchange website Cinkciarz.pl. “The passing on of cost increases to consumers continues.” Read More…
