Deflation continues in August

Prices of consumer goods and services in Poland declined by 0.3 percent year-on-year, according to data released by the Central Statistical Office (GUS) on Monday. In month-on-month terms prices fell by 0.4  percent. The figures are in line with analysts’ expectations. Deflation was lower than in July, when it amounted to 0.2 percent y/y. Deflation was most affected by declining food prices (by 1.8 percent m/m) and prices of clothing and footwear (by 2.7 percent m/m). At the same time, prices in telecommunications grew by 1.3 percent and housing related prices inched up by 0.1 percent.