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POLAND: NBP Expect Annual CPI to Return to Target in Q2

POLAND

Highlights from the NBP's policy statement:

  • Considering the Statistics Poland data, it can be estimated that inflation net of food and energy prices decreased again in May 2024.
  • In the Council’s assessment, incoming data indicate that despite the observed economic recovery, demand and cost pressures in the Polish economy remain low, which amidst weakened economic conditions and lower inflation pressure abroad curbs domestic inflation. As a result, in 2024 Q2 annual CPI growth will run at the level consistent with the NBP inflation target. 
  • Should energy prices be raised, inflation will increase in the second half of 2024.
  • The Council judges that the current level of the NBP interest rates is conducive to meeting the NBP inflation target in the medium term.
  • Further decisions of the Council will depend on incoming information regarding prospects for inflation and economic activity. 

See the full release here.

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