According to GUS (Central Statistical Office) this November marked the first time in over two years that the prices went up in comparision to the previous month. It means also that Poland is getting out of the deflation period which started in June 2014. The situation was caused mainly by cheaper food and oil prices. Inflation in Poland for this year is expected by the NBP (National Bank of Poland) to reach 0,6%.
GUS noted also that Poland’s economy grew by 2,5% y/y in the third quarter, making it the slowest growth of the last three years. The main reason for this is said to be the lower rate of investments both by private companies and state-controlled enterprises. According to some experts, the deflation was not harmful in any meaningful way to the economy of the state, but the slowdown in economic growth will have more serious consequences.
“Deflation isn’t in focus any longer as right now attention shifted to the economic slowdown,” said Monika Kurtek, chief economist at Bank Pocztowy SA in Warsaw. “Deflation in Poland wasn’t like the one from textbooks and, in general, it didn’t do any harm.”
Source: Bloomberg, PSIG/PSH
