Prices are still rising. Inflation in August

Inflation in Poland in August was 4.3 percent year-on-year, according to preliminary data published on Friday by the Central Statistical Office. The indicator increased by 0.1 percent compared to the previous month.

“Prices of consumer goods and services according to a quick estimate in August 2024 increased by 4.3% (price index 104.3) compared to the same month of the previous year, and increased by 0.1% (price index 100.1) compared to the previous month,” the Central Statistical Office informed in a press release.

Inflation August 2024. Why did it increase slightly?

Experts from the Polish Economic Institute believe that the higher rate of price growth is mainly the effect of the July increases in energy prices. “At the same time, food prices continued to grow moderately, and core inflation fell slightly to 3.7 percent,” they write. “In the coming months, we expect inflation to stabilize, mainly due to the high increase in service prices. It will probably keep core inflation at around 4 percent,” we read in the commentary.

mBank analysts wrote, however, that the slight increase is primarily related to a small (seasonal) drop in food prices. “There have clearly been some upward surprises in recent months (at least for us). Interestingly, there are also surprises in relation to popular press information tracking supermarket baskets. Energy prices have risen slightly – we see the potential for greater increases in connection with higher coal prices in the heating season (that will come). Core inflation has settled somewhere in the range of 3.8-3.9 percent. We will see how many water price increases there are, and how many other elements,” we read.