Polish inflation likely to have confirmed flash readings in December

Poland is expected to have recorded a significant acceleration in price in December. The flash CPI figure, which would be released by the Central Statistical Office, is expected to have confirmed the flash estimate that showed inflation accelerating 0.8 percent year-on-year and 0.7 percent sequentially, according to a Societe Generale research report.

The strong acceleration in price was driven by many factors such as a seasonal rise in food prices, transport prices and also rises in price of other goods and services that include, among others, insurance. Prices are expected to rise further in the first quarter of 2017. According to Societe Generale, prices are likely to rise around 2 percent year-on-year because of increases in energy, fuel and gas prices.

“Also, a significant statistical base effect will come into play for the inflation outlook in 1Q17”, added Societe Generale.