GUS improves the data: inflation in Poland at the highest in 20 years
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Consumer inflation in Poland was 5.5 percent on an annual basis according to the final estimate of the Central Statistical Office (GUS) for August. Thus, the GUS improved its preliminary estimate of the inflation rate from August 31, when it informed that consumer prices increased by 5.4 percent in August.
This means that inflation broke a 20-year record – the last time at such a level it was in June 2001, when it exceeded 6 percent. In turn, a month ago, the inflation rate increased for the first time in a decade to the level of 5 percent.
According to the detailed calculations of the GUS, in relation to August last year, the strongest growth was recorded in prices for electricity (9.5 percent), gas (8.1 percent), petrol (29 percent), diesel (25 percent), and LPG for cars (almost 33 percent up).
Radio and TV fees also increased significantly (11 percent). In turn, the prices of food and non-alcoholic beverages increased by almost 4 percent.
ING Bank economists point out the last time we saw higher rates of change in prices domestically in 2001.
“It was then that the central bank, which was building its credibility after the transformation shock, managed to keep the annual CPI below 7.5 percent for the first time in all months. For the next 20 years, CPI inflation did not exceed 5 percent,” ING recalled.
As the economists of the ING bank add, the faster increase in prices is, in addition to the introduced gas price increases, also the effect of the continued strong demand, including for services.
As Bank Pocztowy reported, the GUS data on inflation is much higher than the average market expectations and even further – than before – than the NBP target.
