In Poland, costs for fuel and transportation are lower compared to other countries.
Inflation in Poland is on the decline.
Just recently, Poland's inflation rate for May dropped to 4%, a 0.3% decrease from April. The reason? Cheaper transportation and fuel costs, though the services sector—specifically the hospitality and communal services—are still experiencing price increases. The costs of fuel have been impacted by ongoing tensions in the Middle East, as reported by "Polish Radio".
examined the recent inflation rate developments in Poland. They note that while prices for goods and services are slowing down, there are still specific areas where they continue to rise, particularly in services-related to hotels, restaurants, and housing. The expert also discussed the role of global events, such as Israel's attacks on Iran, in affecting financial markets and oil prices, leading to an increase of about twenty groszy per liter at Polish gas stations.
Here's a quick breakdown of the situation:
- Energy Prices: The reduction in energy prices is a significant factor contributing to the slowdown in inflation
- Core Inflation: Core inflation, which excludes food and energy, is also moderating, with estimates suggesting it grew at about 3.2%–3.3% year-on-year in May
- Food Prices: Although growth has slowed, food prices remain a significant contributor to overall inflation
- Services Prices: Prices in the services sector often lag behind goods and can be resistant to disinflationary trends
- Monetary Policy: The National Bank of Poland has cut its reference rate by 50 basis points to 5.25%, signaling continued confidence in the downward trajectory of inflation
Sources:
- Polish Radio (Subscription required)
- Central Statistical Office of Poland
- Polaris FIZ manager David Chopek
- "Poland's central bank cuts key rate 50 basis points as inflation eases" - Reuters
- "Industry overview: Consumer and Retail" - Deloitte Insights.
Financial analysts have observed the recent inflation rate reductions in Poland, attributing the decrease to a significant drop in energy prices. Despite this, prices within the services sector, particularly in the hospitality industry, continue to rise as a result of ongoing disinflationary trends.
