17:24 31 August 2026
Inflation fails to drop because of CPN and fuel costs
Poland’s inflation accelerated to 3.4% y/y in August, above economists’ 3.1% forecast, primarily due to a sharp increase in fuel prices. Fuel costs rose 5.2% m/m and 24.2% y/y as higher global oil prices outweighed government intervention. A temporary VAT reduction on gasoline and diesel introduced on August 17 came too late to be fully reflected in official data. Falling food prices helped limit overall inflation, while core inflation was estimated at 3.2-3.3% y/y. Economists expect inflation to continue rising and slightly exceed 4% toward year-end.
The stronger price pressures have sharply reduced the likelihood of interest rate cuts, with several banks expecting the National Bank of Poland to keep rates unchanged through 2026.
(pb.pl)
