Polish inflation likely accelerated year-on-year in May, consumption to have driven Czech Q1 growth

Polish inflation and GDP data are set to be released this week. May’s headline year-on-year inflation is likely to have been accelerated. Significantly higher fuel and energy prices, along with a weaker zloty are expected to have strongly contributed to further acceleration. According to a KBC Market Research report, the year-on-year inflation is likely to have come in at 1.9 percent in May.

Food prices are also expected to have contributed positively to inflation. However, core inflation is expected to have remained relatively low. Meanwhile, the Polish Statistical Office is set to release GDP detail from the first quarter. According to KBC Market Research, the growth is expected to have been strongly driven by domestic demand.

Meanwhile, the estimate of Czech economy’s first quarter GDP growth is set to be released this week too. The flash estimate released earlier had shown that the Czech economy grew 4.5 percent year-on-year in the first quarter.

“We don’t expect the new figures published on Friday will defer to that preliminary result. Consumption as well as investment are in our view the main drivers of the economic growth this year”, added KBC Market Research.

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