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    Decreasing Inflation Trends in Poland: September 2023 Report

    Estimated reading time: 2 minutes

    In September 2023, Poland experienced a notable shift in its inflation rate, as reported by the Central Statistical Office (GUS). Year-on-year, consumer goods and services saw an 8.2% increase, while compared to the previous month, there was a 0.4% decrease. This data comes after August’s inflation rate of 10.1%. Let’s delve into the key factors influencing these changes.

    Energy Costs Fluctuate

    According to GUS’s rapid estimate, food and non-alcoholic beverage prices rose by 10.3% compared to September 2022, but dropped by 0.4% compared to August 2023.

    Energy prices also exhibited fluctuations, with a 9.9% year-on-year increase but a 0.8% decrease compared to August 2023. Notably, changes in regulations, such as free medicines for children and seniors and increased limits for frozen electricity prices, significantly impacted September’s inflation.

    The cost of fuel for private transportation dropped by 7.0% compared to September 2022 and decreased by 3.1% from August 2023.

    Economist’s Perspective

    Kamil Pastor, an economist from PKO BP, noted that GUS did not account for the 12% reduction in electricity prices when calculating inflation, considering it a transfer of funds rather than a price decrease. He predicts a continued decline in inflation, estimating it to be around 7% by the end of 2023.

    Poland’s inflation dynamics in September 2023 reflect the influence of regulatory changes, food price volatility, and shifts in energy and fuel costs. These factors, along with expert predictions, suggest a continued downward trend in inflation for the remainder of the year.

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