Glapinski Sees Core Inflation Easing Later This Year

NBP Governor Adam Glapinski reiterates that inflation in Poland stems primarily from external supply-side shocks and "Putinflation" (the impact of the ongoing war in Ukraine). He notes that core CPI inflation likely edged higher in March but is expected to ease off eventually, lagging the decline in headline inflation.

• Hawkish dissenters in the MPC have repeatedly argued that sticky core inflation may prevent headline inflation from declining past a certain level, which forms the basis of their call for continued monetary tightening. Governor Glapinski outlines a reverse causal relationship, arguing that easing headline inflation will prompt core inflation to follow suit.