In July, price growth momentum was 10.8%. This is the lowest inflation since March 2022. Experts believe we will see single-digit inflation in August.
At the end of July, the Central Bureau of Statistics reported that consumer inflation was 10.8 percent in July, according to preliminary data. Every year.
– The prices of consumer goods and services have increased by 10.8 percent in July 2023 compared to the same month last year, according to a flash estimate. (price index 110.8), and compared to the previous month they fell by 0.2 percent. (price index 99.8) – stated in the then communiqué.
An inflation rate of 10.8 means that prices are still rising four times faster than the National Bank of Poland’s inflation target of 2.5%. (with an acceptable deviation up or down by 1 percentage point). According to the National Bank of Poland’s July projection, rising inflation will accompany us for at least two years. This year the average annual price growth rate will be 11.9 percent, in 2024 it is expected to slow to 5.2 percent and in 2025 it will fall to 3.6 percent. show the analyses.
Interest rate cut soon?
Data released Monday confirmed earlier estimates. This means that the downward trend in consumer inflation will continue. As a result, we can expect inflation to drop below 10% soon.
There is no consensus among economists whether inflation will fall below 10 percent. in August or September. The risk factor is the prices of commodities, including crude oil. The fall in inflation may have an impact on the policy of the Monetary Policy Council. In his speech in July, the president pointed out that a drop in inflation below 10 percent would be a good idea. is one of the conditions for interest rate cuts. Waldemar Buda, Minister of Development and Technology, also spoke about the possibility of lowering interest rates.
– Inflation may be at the level “well below” 10 percent, making interest rate cuts possible this year – Minister Buda warned last week.
Source: Do Rzeczy
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
