Inflation in October was 3.1 percent y/y, reported the Central Statistical Office (GUS). This is slightly less than the September reading when its level was 3.2 percent. According to the GUS, inflation rose by 0.1 percent m/m.
These data differ slightly from the market expectations and the quick estimate of the GUS, which predicted 3 percent inflation on an annual basis in October.
According to PKO BP economists, a slight slowdown in CPI inflation is to be caused by a weaker rise in food prices and a decline in core inflation. "Galloping inflation in service prices and disinflation of goods," Piotr Bujak, chief economist at PKO BP, wrote on Twitter.
"We do not see any signs of inhibition in the stubborn part of the base basket: the prices of services provided in-person have mostly accelerated, stabilization or acceleration in the prices of public services (education, care, medicine in a broad sense). Core inflation will be elevated," Bank Pekao economists pointed out.