Prices rose 3.1 percent annually in July, down from 3.3 percent in June, the Statistics Poland early estimates on Friday show. Food bills rose 3.9 percent, while petrol fell by nearly 17 percentage points.
Analysts had anticipated annual inflation at 3.1 percent but there were some surprises as regards the dynamics compared to last month as prices fell overall by 0.1 percent. Food prices were down 1.4 percent in June, while utility fuel bills fell by 0.1 percent. Petrol was up 2.3 percent, as vacation-time trips have spurred demand.
The Ministry of Financed has forecast 3.3 percent inflation for 2020 in its budget guidelines, and expects a drop to 1.8 percent in 2021.
Compared to the last two years, when Poland’s farmers experienced a drought, coupled with huge increases in demand for exports of meat products, food inflation is much milder this year. The inflation curve has flattened since earlier this year, when inflation peaked at 4.7 percent before lockdown. More detailed figures are published around the middle of the month.