CPI to remain below target - NBP report

CPI inflation in Poland is likely to remain below the 2.5-percent target throughout 2014-2016, according to the most recent inflation projection published by the National Bank of Poland on Monday. In the short term, CPI will remain low, as supported by a decline in the prices of food and energy, the NBP said. In the long term, inflation will grow, but it will still remain below 2.5 percent. “This derives from the fact that despite the recovery, the output gap, which is a comprehensive measure of inflationary pressure in the economy, remains negative throughout the projection  horizon (-0.7% in 2014; -0.2% in 2015 and -0.1% of the potential output in 2016).” the report said.