Prices in Poland rose 3.3 pct in June

The consumer price index rose from 2.9 percent to 3.3 percent in June as food and energy price rose by over 5 percent compared to last year according to the state's office.

The Statistics Poland fast estimate of inflation shows electricity, gas and food and beverage prices are still rising much to the surprise of the Ministry of Development which predicted the index would fall to 2.5 percent in June. Food prices rose less than in May however, when Poles had to part with 6.2 percent more for food.

Poland is not alone in experiencing higher prices. In the Eurozone prices rose by 0.3 percent, while the market expected only a 0.1 percent rise.

The culprit may be petrol prices, which are rising along with global market prices. Though Poles are paying one fifth less at the pumps than this time last year, petrol stations were charging on average 5 percent more than in May.

Service prices

Economists are waiting for base inflation calculations. These indicate how prices of services like rubbish or local water rates are changing. Suggestions are that services are considerably more expensive than last year.

This inflation trend may reverse though in the second half of the year, a PAP poll of analysts suggested. Polish Oil and Gas is bringing in cheaper charges to reflect the relative fall in global prices, while food prices are not expected to rise significantly in the autumn.

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