Polish headline inflation falls again in March, NBP likely to stand pat in near future

Poland’s headline inflation falls again in the month of March. The consumer price surprisingly extended its slide in March as the headline inflation fell 0.1 percent on a sequential basis, suggesting a rise of just 1.3 percent on a year-on-year basis. Since this is just a flash estimate, there are only partial details available. The surprising fall was concentrated to non-core components of the consumer basket.

However, the fact that the headline inflation of Poland disappointed again on the downside suggests that its deviation from the National Bank of Poland’s target of 2.5 percent and its inflation projection has widened further, noted KBC Market Research in a report.

Therefore, the central bank might keep its policy rate on hold for near future in spite of the ongoing tightening in the domestic labor market, stated KBC Market Research.

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