EUROSTAT: Deflation in Poland rose to 0.6% in December y/y

Deflation increased to 0.6 percent in December y/y, compared with 0.3 percent surge in November, according to Eurostat. Deflation is beneficial to the Polish economy, according to Jerzy Hausner, member of the Monetary Policy Council. “Deflation does not pose a threat to the Polish economy. What is dangerous is a deflationary spiral, a situation when consumers withhold from buying due to the expectation of a further slide in prices” Hausner told journalists. In Poland, as a rule, consumers increase their spending when prices are falling. “We are observing significant growth of individual consumption”, he added. Earlier, Central Statistical Office (Gus) informed that deflation was 1.0 percent in December y/y. In the UE deflation was at 0.1 percent in December 2014.