Inflation in Q2 is seen at 1.7%

In Q2 2018 the inflation may amount to 1.7 percent on the annual basis, the Ministry of Finance estimated. The risk for economic growth may come from the situation at the main export markets for Poland that had a slowdown of economic activity in Q1. A higher inflation in Q2 compared to Q1 (1.5 percent) is mainly attributable to “the higher dynamics of energy prices,” the Ministry said. The Central Statistical Office (GUS) also reported that GDP in Q1 grew by 5.2 percent y/y compared to an increase of 4.9 percent y/y in Q4. Investments in Q1 rose by 8.1 percent, private consumption grew by 4.8 percent, while domestic demand increased by 6.8 percent y/y.