Inflation in August: We know what went up the most in price
In August 2024, inflation in Poland accelerated, reaching 4.3% year-on-year. The biggest price increases were for energy carriers, water charges, and educational services. What does this mean for our wallets?
According to data from the Central Statistical Office, CPI inflation, which includes prices of both goods and services, amounted to 4.3% year-on-year, which is in line with earlier estimates. In particular, prices of services increased by 6.2%, and goods by 3.6%.
The CPI inflation rate for August came as a surprise to many experts who had predicted that inflation would remain at July’s 4.2%. In fact, the CPI rose slightly higher than expected, up 0.1 percentage points from the previous month.
The biggest price increases
Analyzing detailed data from the Central Statistical Office on price increases in August, the most noticeable increase was in the prices of energy carriers – by 10.4% year on year. Additionally, water charges increased by 12.6% and sewage services by 11.9%. Educational services also increased in price by 9%, and prices in restaurants and hotels increased by 7.5% compared to August 2023.
In the food and non-alcoholic beverages category, prices rose by 4.1% year-on-year, but fell by 0.1% compared to July. In turn, alcohol and tobacco products rose by 4.3% year-on-year, with a 0.2% increase month-on-month. It is worth noting that prices for educational services rose by as much as 9% year-on-year, which is associated with a high increase in wages and business costs.
Inflation records in August
In August 2024, the price increases for electricity (+18.5% y/y), gas (+16.6%) and butter (+13.6%) were particularly pronounced. Healthcare services also saw significant increases: doctor visits went up by 9.2%, dentists by 8.6%, and hospital and sanatorium services by 10.9%. Hairdressing bills rose by 8.6%, and insurance by 8.1%.
August 2024 was another month in which inflation exceeded the National Bank of Poland’s (NBP) target of 2.5%. Economists predict that inflation could reach 5% in subsequent quarters before gradually declining in the second half of 2025. Although prices of some products are falling, such as clothing and fuel, the general trend points to further price increases, which maintains inflationary pressure.
From a consumer perspective, rising consumer prices continue to affect everyday life. In particular, housing, recreation, restaurants, and hotels are driving up the overall cost of living. Price increases in these categories translate into higher CPI, which puts additional strain on household budgets.
