Core inflation, excluding food and energy prices, in July 2024 amounted to 3.8 percent year-on-year, the National Bank of Poland (NBP) reported. In June, this indicator was 3.6 percent.
As reported by the National Bank of Poland, in year-on-year terms inflation in July:
– after excluding administered prices (subject to state control), it amounted to 2.8 per cent, compared with 2.5 per cent a month earlier; – after excluding the most volatile prices, it amounted to 4.6 per cent, compared with 3.3 per cent a month earlier; – after excluding food and energy prices, it amounted to 3.8 per cent, compared with 3.6 per cent a month earlier; – the so-called 15-percent trimmed average, which eliminates the impact of 15 per cent of the basket of prices with the lowest and highest dynamics, amounted to 4.2 per cent, compared with 3.1 per cent a month earlier.
The CPI index (consumer inflation reported by the Central Statistical Office) in July 2024 amounted to 4.2% y/y, compared to 2.6% y/y in June.
Core inflation
“The National Bank of Poland calculates four core inflation indices every month, which helps understand the nature of inflation in Poland. The CPI shows the average change in prices of the entire, large basket of goods purchased by consumers. When calculating core inflation indices, price changes in different segments of this basket are analyzed. This allows for better identification of sources of inflation and more accurate forecasting of its future trends. It also allows for determining to what extent inflation is permanent and to what extent it is shaped, for example, by short-term price changes caused by unpredictable factors,” explains the central bank.
The indicator most commonly used by analysts is the inflation rate excluding food and energy prices.
“It shows the trends in the prices of those goods and services on which the monetary policy conducted by the central bank has a relatively large impact. Energy prices (including fuels) are set not on the domestic market, but on global markets, sometimes also under the influence of speculation. Food prices depend to a large extent on, among other things, the weather and the current situation on the domestic and global agricultural market,” explains the NBP.
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