Poland: Inflation falls in June
Inflation came in at 11.5% in June, down from May’s 13.0%. June’s reading represented the lowest inflation rate since March 2022. The slowdown was primarily driven by slower rises in prices for food and non-alcoholic beverages and utilities as well as by falling prices for fuels.
Annual average inflation declined to 15.9% in June from 16.3% in May. Meanwhile, core inflation fell to 11.5% in May (the latest month for which data is available), from the previous month’s 12.2%.
Lastly, consumer prices were unchanged from the previous month in June, matching May’s reading.
Commenting on the release, Rafal Benecki, senior economist at ING, stated:
“At this rate of decline, we will see CPI at 9.8% year-on-year in August, so we think the National Bank of Poland (NBP) can cut rates in September. By year-end, CPI inflation may slow closer to 7% yoy. […] Hence another interest rate cut in October is also very likely.”