16:00 14 June 2024
Inflation Up for the Second Month in a Row
Prices in May were on average 2.5 percent higher than a year earlier, according to the latest data from the Central Statistical Office (GUS). This confirms the "quick" estimates from the end of May and aligns with the National Bank of Poland's (NBP) target of maintaining price fluctuations at 2.5 percent +/- 1 percentage point. However, no immediate interest rate cuts are expected, as inflation is set to accelerate from July with upcoming increases in electricity and gas prices.
GUS data indicate the second month of accelerating consumer price increases, with April's CPI at 2.4 percent and March's at 2 percent. Month-on-month, prices rose by 1 percent.
The most significant increase y/y was in organized foreign tourism, which rose by 15.1 percent, despite the strengthening of the zloty. Household-related services, such as cleaning, increased by 12 percent, and financial services from banks and insurers rose by 11.7 percent.
Among food items, tea prices rose the most (+10.2 percent y/y), followed by fruit and vegetable juices (+10 percent). Water supply increased by 9.5 percent, sewerage services by 10 percent, and medical and sanatorium services by 11.3 percent.
This data underscores the ongoing challenge of managing inflation amid rising costs for essential services and goods.
