Poland’s inflation in April is expected to have decelerated from March in annual terms and rose on monthly basis. The acceleration of CPI on monthly basis is expected to be due to the impact of higher prices of fuel and food. Food prices are likely to have risen 0.3%, whereas transport prices are expected to have grown 1.8% in April due to 2.8% m/m rise in fuel prices, according to Societe Generale’s research note.
Moreover, footwear and clothing are also expected to have risen by around 2.8% m/m. However, these gains are expected to have been partly countered by lower gas prices from 1 April that might have lowered the housing and utilities costs. April’s core inflation is expected to have come in at -0.3% y/y as compared with March’s print of -0.2%, noted Societe Generale.
“We estimate that the CPI decreased to -1.1% yoy in April from -0.9% yoy in March, up 0.2% mom. Our forecast is in line with the flash estimate, and a reading of -1.1% yoy would be the lowest so far this year”, added Societe Generale.
