22:09 31 May 2026
May inflation data contains surprise deflation
May inflation data came as a major positive surprise. Instead of accelerating, price growth slowed, and Poland even recorded monthly deflation in May. Annual inflation was 3.1%, below economists’ forecasts of 3.5–3.6%, while prices fell 0.3% m/m. The main reason was an unexpected 1% drop in food prices, the steepest May decline in at least 15 years. Fuel and energy prices also remained stable, helped by government price controls and tax cuts, limiting the impact of the oil-market crisis.
With no clear signs of second-round effects or stronger core inflation, Poland’s Monetary Policy Council is expected to keep interest rates unchanged at least until July, maintaining its wait-and-see approach.
(pb.pl)
