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Polish CPI May Slow To 4% In January, Central Banker Wnorowski Says

By Reuters
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Polish CPI May Slow To 4% In January, Central Banker Wnorowski Says

Polish rate-setter Henryk Wnorowski said he thought inflation in January could have slowed to around 4%, and that in March it would be within the central bank's target of 1.5-3.5%.

In December, inflation stood at 6.2% year on year, and the data for January will be published by the Central Statistical Office on 15 February.

"... my dream is another reading lower by 2 percentage points compared to the previous month. I think I will see it in the reading for January," he told private Biznes24 television.

"There are many indications that we will reach our inflation target in March. However, there are certain threats starting from the second quarter when it comes to the new dimension of fiscal and regulatory policy."

Household Inflation

The National Bank of Poland (NBP) has taken a cautious approach due to uncertainty over whether the government will extend or modify policies designed to soften the blow on households from inflation.

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A law that scrapped value-added tax on food expires at the end of the first quarter, while another designed to lower energy prices is currently set to remain in force until the end of the second quarter.

Poland's main interest rate has been on hold at 5.75% since October and central bank Governor Adam Glapinski said last week it could remain unchanged for the rest of the year amid "very high uncertainty" over the outlook for inflation.

Wnorowski, asked on whether he saw any chance that rates could be cut, said that "nothing can be ruled out, but a few conditions must be met." He didn't provide further details.

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