Polish inflation falls below 2 pct in January, NBP likely to remain relaxed

Poland’s headline inflation slipped back below 2 percent in the month of January, as expected. This signifies that the National Bank of Poland’s projection materializes, so central banks’ voices calling for stable official interest rates might be actually correct, stated KBC Market Research in a report.

The headline inflation is expected to remain slightly below the 2 percent level in the whole first quarter of 2018 as food price shock fades away and the stronger zloty will curtail price pressures of the tradable goods. Given such a strong zloty, it would a challenge to reach the central bank’s target of 2.5 percent year-on-year.

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