Poland Inflation Unexpectedly Eases To 15-Month Low Of 2.8%

(RTTNews) - Consumer price inflation in Poland unexpected slowed for the first time in four months in October to its lowest level in over a year, mainly due to slower growth in food prices, preliminary data from Statistics Poland showed on Friday.

The flash consumer price index rose 2.8 percent year-on-year, which was the lowest since June 2024 when inflation was 2.6 percent. The index climbed 2.9 percent in both August and September. Economists had forecast an acceleration to 3.0 percent. Inflation has been hovering within the target of plus or minus 2.5 percent since February 2024. Earlier this month, the central bank unexpectedly reduced its key interest rate for a third policy session in a row, citing an improvement in the inflation outlook.

The Narodowy Bank Polski cut the reference rate by 25 basis points to 4.50 percent, which was the third reduction in a row.

Prices in the food and non-alcoholic beverages group rose 3.4 percent year-on-year, which was much slower than the 4.2 percent increase in September. The electricity, gas and other fuels prices were 2.6 percent higher in October, which was slightly greater than the rise in the previous month. Auto fuel costs decreased 1.8 percent.

The CPI edged up 0.1 percent month-on-month after remaining unchanged in each of the previous two months. Economists had expected a 0.3 percent increase.