Polish inflation likely to average 1.9 pct in 2019, underpinning stability of rates scenario – Erste Group Research

Polish inflation is likely to slowdown this year, given the recent changes in legislation about energy prices in 2018. According to an Erste Group Research Report, Polish inflation is expected to come in at 1.9 percent in 2019. According to the new legislation, the rise in wholesale energy prices should be compensated for by a fall in duty and other fees.

This should keep energy prices for consumers at the same level as was approved in June of last year. Furthermore, falling oil prices are likely to subtract from the overall inflation figure this year. Meanwhile, demand pressure continues to be restricted, as seen by core inflation holding below 1 percent for an extended period of time.

“All in all, we see average headline inflation at 1.9 percent this year, which supports a stability of rates scenario”, added Erste Group Research.