Poland’s Consumer Price Index reading fell 0.3 percent year-on-year in August and 0.4 percent quarter-on-quarter, according to the National Statistical Office. The biggest price drops were in the food and clothing sectors. Food prices dropped by 1.8 percent month-on-month in August. The figures are in line with analyst expectations.
The negative reading for August increases pressure on the Polish central bank to cut interest rates at its upcoming meeting in October. Interest rates are currently set at 2.5 percent. “Despite the fact that the Russian-Ukraine conflict is easing, we predict that the expected interest rates cuts will place downward pressure on the Polish złoty,” analysts from Danske bank wrote in their report.
